First of all, this is kind of a last ditch effort. Im very close to giving up on this buggy piece of trash. Lets start at the beginning.
I downloaded the game from GOG.com. Two Worlds Epic Edition. Installed, and found out that I had a newer version of Physx. I then proceeded to play. The game worked great up until the first village. I noticed that lipsyncing was broken. I consulted the thread on these very forums, and applied the older file. Then I started having crashes. Lots of random crashes. Sometimes in conversations, sometimes in combat, sometimes when I just look at a plant funny. Sometimes I go for an hour of play, but most of the time its every 3-10 minutes. However, at some point, there WILL be a crash to desktop. Its simply going to happen.
I uninstalled the game, deleted my physx version, and installed the version that comes with the game. Booting up, I left the lipsyncing be, and tried again. Same issue. I applied the latest physx drivers over the previous ones. I updated DirectX. (Wouldn't let me, I have latest version.) and updated my sound drivers. (see previous.) I then set the game to compatibility mode, and tried XP and Vista modes. I have it set to run as administrator. I also have UAC off, and my kepersky internet security turned off. I tried the dual core thing, to no effect. I also tried lowering the settings.
So for the last four hours I have been working on getting this game to work. I just can't do it. Ive checked both these, and the official Two Worlds forums, as well as the steam forums. I cannot find a solution, the game WILL NOT STOP CRASHING. Thats bold so you can understand my frustration. Simply put, short of me opening code, I cannot fathom what could POSSIBLY be wrong with this POS software. Ive posted my specs below, fresh off the diag log.
Its really frustrating because I was really enjoying the game, the creating your own items, and spells, and the combat, and every part about it really. I KNEW I should have purchased Raptor 2010 instead. :(
Anyway, any help would be greatly appreciated, but I'm not holding my breath.
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Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7600) (7600.win7_gdr.100226-1909)
Language: English (Regional Setting: English)
System Manufacturer: ASUSTek Computer Inc.
System Model: G60JX
BIOS: BIOS Date: 02/05/10 19:13:52 Ver: 08.00.10
Processor: Intel(R) Core(TM) i5 CPU M 430 @ 2.27GHz (4 CPUs), ~2.3GHz
Memory: 4096MB RAM
Available OS Memory: 3958MB RAM
Page File: 1330MB used, 6581MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7600.16385 64bit Unicode

You say you have updated directx 11 but have you also installed the older directx 9.0c? I believe this game is old enough that it should use directx 9.0c and if you have never installed a directx 9 game you may be missing files needed to run the game.

Just to be sure I downloaded the direct x redist.exe which contains all the libraries back to dx7. Unfortunately it didn't help any. I still have repeated random crashes.
Thanks for taking the time to read!

I'm having the same problem. The game ran well for the first 20-30 minutes and then began crashing every 2-3 minutes. My system isn't first-rate, but it should be able to handle it at least on lower settings:
Intel CORE 2 Duo 1.30 GHz
4 GB Ram
Windows 7 64-bit Ultimate
DirectX 11 with updates back to 7
It seems like a fun game. If anyone has an idea about the cause/solution, that would be great.
Cheers.

Sorry bro! I never found anything to fix this, I eventually just uninstalled the game. Ive moved on. Best of luck finding a solution!

I probably can't help you I'm afraid, but a of shot in the dark:
have you tried lowering sound acceleration to basic? I used to be able to do this through dxdiag, but having said that I can't find the option when I look now (it's possible that my sound is only basic). I've noticed this game has a few problems with audio.

Thanks for the tip, though I admit that I finally gave up.. It wasn't a sound issue--unless audio problems were at the root of the crash-to-desktop issue. I didn't even have frame rate problems, just sudden . Anyway, I couldn't make it work, so I uninstalled the game. Pity. I liked its quirkiness on top of what appeared to be solid, if not exceptional, game mechanics
I will say from my limited experience with Two Worlds that any rpg fan who also has a healthy sense of humor about the nature of fantasy rpgs should take a look at this game. May you have better technical luck than I had, of course.

I'm sorry you guys couldn't get it working - you missed out on an interesting game. Not an amazing game - but interesting.
I was suggesting sound accelleration not because it would fix the sound, but because such errors can sometimes fatally crash the game. Lowering sound accelleration - big plus for old games that aren't working.
If you ever come back to the game - please try it. Once again - sorry you missed out,

Thanks very much! I'll have a go at it. :)

Don't. This was clearly an advert for some mickey mouse SEO company.
There is no evidence that the "Number 1" cause of crashes is a corrupted registry. In your case it is almost certainly not the issue. If there was a corrupted entry that was system wide it would be experienced system wide.
The registry is always deceptively put forward as this arcane presence that might do anything. It's actually just a database. If you're pissing around with core windows keys, you can of course change a lot. However this is not a problem with windows. The Two Worlds registry entries - if there are any, will be set upon install, if you haven't tried an uninstall, re-install, then you've approached the forum too soon. That would fix any registry issues.
I suggested lowering the sound acceleration level. This was not to prevent sound problems. using the high level features of directx sound accelleration has caused fatal crashes in many a game. It is much less common now, but try it.
If you want to run a registry cleaner, then get good community advice on one. A lot of people ship malware through such tools (thouguh I am not suggesting the other poster was doing that).

That's spam mate, just ignore it.

Put me down as someone else who is also having this issue. Constant crashes that prevent me from enjoying this game to the fullest. I've submitted a GOG support ticket for my issues with this game, here's hoping they can help.

This sounds stupid but this worked for me... Win 7 64

Install outside og the /program files directory
install as administrator
install in xp sp3 compatibility mode

run the game as admin
run the game in win xp sp3 compatibility mode

"I also disable visual themes for most games for performance boosts too but i have no idea if it even helps or not."

with that done it seems to work flawlessly for me

I was just about to suggest this, but then I saw you'd seen it already. Apparently the "program files" directory in Win 7 causes all sorts of problems if you install your games there. It's recommended to install any and all games to a different directory.

Maybe we should try to convince GOG to change the default directory on their installers?