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I'm attaching my Youtube video recording of the problem because I have no idea how to explain this with words.

EDIT: I'm attaching a screenshot of my video url cause this piece of shit won't let me link it directly.

The relevant bits start at 1:15.

EDIT #2; The title of the video is "Neverwinter Nights 2 Graphics Error Edited Record" w/o quotations, if you want to try to use the youtube search bar.

EDIT #3; Sorry for potato quality-never done screen recording before.
Attachments:
Post edited January 19, 2016 by NinjaDork
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Your Intel graphics chip can't cope. From the laggy animations, that is patently obvious right from the start of the video. When it crashes is when it goes tits-up. The driver even gives you the reason: "... stopped responding".
In your Intel HD Graphics Control Panel, under the 3D tab, is there an option to turn off Morphological Anti- Aliasing?
If so try turning it off.

If not, try reinstalling or updating your graphics drivers.

Also, have you got "wait for vertical sync" enabled in the graphics option of the game.
Post edited January 19, 2016 by olnorton
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Hickory: Your Intel graphics chip can't cope. From the laggy animations, that is patently obvious right from the start of the video. When it crashes is when it goes tits-up. The driver even gives you the reason: "... stopped responding".
I'm aware of the fact that my graphics card is sub-par. However, it usually handles the game very well-my standard FPS during play is 40-50. It's much more laggy in the youtube video because the video recording software I used to make it locked the FPS at 30 when I exported it, and I haven't figured out how to change that yet.
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olnorton: In your Intel HD Graphics Control Panel, under the 3D tab, is there an option to turn off Morphological Anti- Aliasing?
If so try turning it off.

If not, try reinstalling or updating your graphics drivers.

Also, have you got "wait for vertical sync" enabled in the graphics option of the game.
Thanks for the options-I'll try those in a sec and get back to you.

EDIT #1; Alright, so running down the list;

A) There is no Morphological Anti-Aliasing option visible in the HD Graphics Control Panel.

B) I enabled the wait for vertical sync in the game menu-it did nothing to help the issue.

Looks like I'll have to uninstall and reinstall-do you have any advice for how to do that while I google it?

EDIT #2; Maybe I screwed up the uninstall and reinstall, but that didn't work-it still crashes.

Also, did you watch the video long enough to see the 4th error message; "Access to graphics for nw2main.exe has been denied" or something like that?
Post edited January 19, 2016 by NinjaDork
Okay, it seems like I managed to do a brute force fix, since the HD Graphics panel doesn't have a Morphological Anti-Aliasing option available. Basically what I did was force the comp to stop using applications graphics settings whenever possible.

The relevant changes I made to default settings are as follows;

1) Refresh rate changed to and locked at 60p Hz;

2) Disabled Application Optimal Mode;

3) Switched it to custom settings with no Anti-Aliasing, Anisotropic Filtering set to Application Settings, Vertical Sync set to Driver Settings;

4) Input Range set to Driver Settings with Limited Range.

As near as I can tell, this disables whatever programming link was at the root cause of the "Application has been blocked from accessing Graphics hardware" error.

The in-game graphics suffered under these settings (several combat animations did not work correctly) But I did manage to get past the trouble spot, successfully save my game, and exit with no error messages.
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NinjaDork: Also, did you watch the video long enough to see the 4th error message; "Access to graphics for nw2main.exe has been denied" or something like that?
That is why I asked about Morphological Anti- Aliasing, because many people with Intel HD Graphics claimed disabling it stopped them getting that message.

https://www.youtube.com/watch?v=t9xnmBIM-fg

Without knowing your hardware, it is hard to get specific.

But that is a pretty generic message. you'll see people with GTX 980's getting it while trying to play Microsoft Solitaire.

You could take it literally and try playing with your firewall disabled.

But that message could just be because the graphics driver had already stopped working.

I only mentioned v-sync because I used to play NWN2 with a GTX 780 and the temps would go hotter than any other game unless I had v-sync enabled.

Can you play games that are more graphics intensive without any problems?

Edit: I posted this without seeing your above message because I was on the phone after starting this reply..
Post edited January 20, 2016 by olnorton
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NinjaDork: Also, did you watch the video long enough to see the 4th error message; "Access to graphics for nw2main.exe has been denied" or something like that?
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olnorton: That is why I asked about Morphological Anti- Aliasing, because many people with Intel HD Graphics claimed disabling it stopped them getting that message.

https://www.youtube.com/watch?v=t9xnmBIM-fg

Without knowing your hardware, it is hard to get specific.

But that is a pretty generic message. you'll see people with GTX 980's getting it while trying to play Microsoft Solitaire.

You could take it literally and try playing with your firewall disabled.

But that message could just be because the graphics driver had already stopped working.

I only mentioned v-sync because I used to play NWN2 with a GTX 780 and the temps would go hotter than any other game unless I had v-sync enabled.

Can you play games that are more graphics intensive without any problems?

Edit: I posted this without seeing your above message because I was on the phone after starting this reply..
Oh yeah, I can play many games that are more graphics intensive. I can play Mechwarrior Online at low graphics, Starcraft 2 and Diablo 3 at medium, Warframe with a custom mix of low and medium graphics, Warthunder at low, World of Warships at medium, etc etc etc.

The worst I've ever had with any of those games is an occasional lag spike that lasts for 5 seconds or less, then back to normal. I've never had either the "Graphics card has stopped working" or the "Application has been denied access" happen on a game before.

Also, I have no idea why there isn't a Morphological Anti-Aliasing option available, and it's pissing me off. If I gave you my relevant hardware specs, would you be willing to take the time to think of further advice?
Post edited January 20, 2016 by NinjaDork