I spent several hours last night read through the forums and googling ways to fix this issue but alas all my efforts were wasted. I installed IWD2 as an admin, set it to run in xp sp3 as an admin like I do for all GoG games. That didnt work so I tried fiddling with all of the other compat options as well as any other fix I could find in the forums.

I submit a support ticket but in the mean time, does anyone have any new ideas on how to fix this?

Could you tell us what exactly have you tried? That's to avoid posting hints that didn't work for you already.
Your specs (OS, GPU + drivers, DirectX, etc.) would also be helpful.

I am using:
Processor: Intel(R) Core(TM) i3 CPU M 350 @ 2.27GHz (4 CPUs)
ATI Mobility Radeon HD 5470
DX11 (with all the directx fixes I have been able to find)

Updated my drivers last night.
Tried all combinations of compat options with xp sp3 and older.
Running it as admin
tried all possible combinations in the iwd2 config
the forced DDraw method
reinstall and redownload
and gog general troubleshooting ideas

Have not tried installing in safe mode because I didnt think of that until today
It is worth mentioning someone else posted a similar issue and never got an answer
Also not seeing my message to GOG support team in my account messages, is this normal?