I am having a problem with static in certain conversations...notably between Zoe and Damien.

I tried uninstalling and reinstalling but no difference.

I am on Win 7 64 bit.

Anybody else have this problem?

Isn't this "static interference" part of the plot? If you are talking about conversations over the phone, there should be static. Now, if you're talking about static when they talk to each other in person ... that would definitely be a bug.