I recently picked the first game up from a local thrift shop and I found that it works perfectly well in Windows 7 save for one issue I am having with the cutscenes. The dialogue constantly gets cutoff mid sentence when it plays in the game. I have tried forcing Vsync in my graphic card's 3D settings, tried running compatibility modes, and sett the affinity to use one core of my processor but the issue still persists. Is there any way to fix it or is it a bug related to the PC version that I just discovered?

Ok I fixed this issue by editing the RENDER.ini file to change the value of syncRetrace from 0 to 1. I do lose the fluid 60 FPS from having it off but I can live with that.

Someone might have the same problem, so I'll post the solution that worked for me (modern NVIDIA graphics. Don't know about other brands).

Vsync should be forced to "Adaptive-Half Refresh Rate" for game executable. SyncRetrace, compatibility modes and "Run as admin" option didn't seem to change anything.

syncRetrace = 1 worked for me, while the Adaptive-Half Refresh Rate did not help at all.