Whenever there is dialogue the tail end of one character's phrase is cut off prematurely by the next speaking character. There is no problem when Caleb's spouts one-liners.

I've tried:

The multiple 3D audio options (including none)
Lowering/Increasing number of audio samples
Disabling DX6 Commands
Changing Windows compatibility mode to Win98 for Blood2.exe and Client.exe

I'm running both dege's Blood 2 high res fix and dgVoodoo2. My audio board is an ASUS Xonar Essence STX II.

I'm not sure what to try next, this issue is annoying enough to prevent me from playing the game. For what it's worth, Shogo doesn't seem to exhibit this behavior.

UPDATE:

The problem was tied to the framerate. Setting the MaxFps option to 60 in the autoexec.cfg did NOT work. I had to set a global framerate limit of 60fps in Nvidia Profile Inspector. (The application specific Blood2.exe profile frame rate cap did not work.)