Hello, I know this topic has been idle for a time but I recently install Icewind dale 2 on Win 8 64 bits and begin to have the same problem.

As some people here mention, the problem is the hardware acceleration. However, disable for all the O.S. don't sound too wise, the huge pack suggested by BarfBagd is for developers, so I don't like the idea of install another tools (And actually didn't solve my problem).

Another solution I found was on the wiki: http://pcgamingwiki.com/wiki/Icewind_Dale_II#Issues_and_Fixes They suggest another tool for do the same than the previous tool... and again didn't work for me...

Why didn't work for me? Because the problem is from video, and the video is ruled by your video-card, that is the reason, for some works and for others don't. On my case, my humble laptop use a intel integrated video-chip, so Didn't fix the problem. BUT the problem is located exactly there... So, we have the final solution:

Run the config.exe, disable the lock button and down the Graphic scale to al least "avergae". And don't cry of "low graphics" after all the sprite are so old that I can't find the difference.

P.d. The Widescreen module probably will give problems with this...

The Infinity Engine ddrawfix (which apparently already came with my IWD2 download/installation from GOG?) doesn't seem to work for me. There are two possible settings to choose from when you open the setup-ddrawfix.exe, and neither of them helps.

What can I do? I run the game on a Radeon Mobility 4500/5100 series laptop graphics card, so it shouldn't have to do with Intel Integrated chips. Furthermore, every other Infinity Engine game runs fine.

EDIT: Apparently, it had to do with my laptop overheating. Still, this only happens on IWD2, no other Infinity Engine game. I think it'd be great if GOG could do something about the performance problems.

I am having the same issue, but the patch doesn't seem to be applying. I get an error message saying it is unable to find dialog.tlk

You have placed, and are running it from the wrong location. The folder (ddrawfix) and file (setup-ddrawfix.exe) needs to be placed in the main IWD2 installation folder, but make sure it's not installed to Program Files.

Thank you, I will try that.
Ha ha ha; man, that worked perfectly. And to think that I wasn't expecting a reply for a week or so.

I spent about a week trying to solve a very annoying lag and generally slow gameplay in IWD2. None of the fixes that are commonly suggested helped at all, e.g. lowering the settings, installing the ddrawfix or Microsoft Compatibility Toolkit etc. The lag mostly occured during combat, where the game slowed to a crawl. It was especially bad whenever I equipped an item or switched between weapon sets, and sometimes when I was casting spells. I also had horribly long load times. Out of combat the game seemed to run a lot smoother, which got me to thinking maybe it has something to do with the sprites.

So I uninstalled 1pp (GOG won't let me post links, so please prepend the www yourself):
shsforums.net/topic/55047-1ppv410-release-download-discussion/
It adds new character animations to the game and more importantly has a component that intelligently switches between the Fighter/Thief and Mage avatars depending on whether armor or a robe is equipped. I'm guessing that component caused the lag when switching weapon sets, because suddenly the game was back to its normal, fast self. I don't want to bash the mod, I've had a fantastic experience with it on BG 1 and 2 (also on Windows 7), where it runs without a hitch. It's possible I simply installed it wrong or the IWD2 engine simply doesn't like it when you mess with the sprites.

Either way, I just wanted to leave this here in case someone else is having this problem with 1pp installed and none of the official fixes work.