I went around the town talked to all the people, eventually went to the cemetry, went down the basement there and got a good ass kicking, went back up, all the enemies had respawned like there were freaking hordes of them. Got through them and ported to town via the map, Then the big long page of text from the start came on the screen basically introducing the story and why you are here after being released, all my dialogues had been reset, the priest bloke gave me another 2k gold and all the gates are locked.

I can reload my save and port to eg the place with the gallows, and its fine, but if I port to town from there it al gets reset again >.>

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There is a bug reporting thread on the steam forum of this game which the dev seems to be active on, maybe you can try there>

Thanks but I just cba reporting it, I had another char so I cheated in Priest stats and carried on from there, thanks for the reply though :)

I was told that this is an unresolved memory leak and that the only solution is to go back to a save where everything is alright still.