I'm totally stumped with this one, see if you can figure it out (I'm trying to keep it spoiler free as possible)

(video of the glitch)

Its only in this particular location, but its rendering the important stuff (such as talking to people and spotting items to pick up) impossible to do. Everything is up to date (drivers and such) but I can't get it to stop doing this.

If you'd like more videos (such as changing rooms) I'll post them

Any ideas?

True, true, I see you've made staff. Kinda wish I'd been around to earn the rep to make it.

Anyway, I've emailed support as you asked.

For a solution I was emailed and asked to:

"Please make sure that your graphics card drivers are not forcing any settings upon the game. To do this, right-click an empty area on your desktop and go to:
NVIDIA Control Panel -> 3D Settings -> Manage 3D Settings and click “Restore”."

This worked and stopped the glitching

I had issues from the first scene on the dragon. I could not hear any dialogue and the text for their speech wasn't showing up.
My system WinXP with a soundblaster 5.1 card.
So i ran dxdiag.exe went to the sound tab and set Audio acceleration to Basic Acceleration and it worked fine after that.