I've updated the edited Utext_english.ini file that I uploaded a few days ago.
I've been playing through it a bit and I guess I removed a few lines that were part of cut scenes (such as finding Falan's book). I've added them back in to this file...
http://www.megaupload.com/?d=9MM0AY7H
Pretty much the only other things I took out were short comments by the player. I don't even know if they're normally used, but I took them out just in case.
If anyone notices a problem or finds any lines that shouldn't have been removed, post here or feel free to edit them back in and upload another file.
BTW, this game is every bit as amazing as I remember it being. Its been years since I've played this and its held up incredibly well. :)

Hello people.
Obviously, great work solving the game problems.
For the lag in menu, it tortured me for an hour until I very simply solved it very simply by putting "bits per pixel" from 32 to 16 (and forcegdi = 0). All the other graphic options are at maximum. Now my game is working fine.

Another game bought, another game I can't play because for god knows what reason it runs on my core i5 geforce310 like im using a 2mb integrated card from 15 years ago. I have the EXACT SAME PROBLEM with Gothic 2. It is extremely frustrating because when these games were new I had a total shit Celeron 400MHz, and THEY RAN ABOUT THE SAME ON THAT AS THEY DO ON MY PC NOW.

What am I to do? I'm pretty savvy but I'm no computer scientist. I don't see why I should pay six dollars for this game, and then have to spend hours of MY time making it work properly. The whole reason I spent six dollars instead of JUST PIRATING THE DAMN THING was because i expected it to WORK!

Have you tried using Arx Libertatis?