I've found the solution. For Windows 7 64 bit, anyway... This works with every game I've found that just freezes like with This and The Longest Journey.
http://forums.steampowered.com/forums/showthread.php?t=2823234
Edit: Glad I found this early. When you're done with the game, go back to "screen resolution" and in multiple displays select "Show desktop only on 1". Otherwise your folders will open up on the "second screen" and you won't see them.
Alliteratively, if the screen res. box opens in the "second screen" as well, access the control panel from the taskbar start menu (the one that appears when you click the windows logo in the bottom left) and select the screen res. menu from there or do the (windows logo) + p shortcut and select "computer only". I don't know what happens if you hit "projector only" in this state, so be careful.