ecokumm: Yep, this is an issue that's been plaguing the game ever since the sequel came out. As stated above, it has something to do with both versions of the engine not being able to play along together. Because of reasons.
BUT! There is hope! I actually found a solution that worked for me:
1) Run The Suffering. Play for a bit, then exit.
2) Run Ties That Bind. Play for a bit, then exit.
At this point, The Suffering should be having the missing textures issue
3) Run REGEDIT
4) Go to HKEY_LOCAL_MACHINE > SOFTWARE > Wow6432Node > Surreal > Riot Engine
5) Delete "SettingsDX105"
6) If you attempt to run The Suffering now you'll get an error, so you'll want to run suffering.exe with the -setup modifier
You'll have to configure the graphics in the launcher again as you did the first time, but both games should run OK now. God knows why. I just tried this in the GOG versions, I went back and forth between both games several times, and they're running without any issue.
I'm on Windows 10 Pro with all the latest patches.
Credit to cornoratu @ fileforums dot com
Glad to see this works for someone - I tried this yesterday with no joy.
(I only have The Suffering installed at the moment and the problem persists, and thats after cleaning the registry)
Ive asked for a refund, wasted too much of my life trying to get this game to work.
EDIT
Incredible , 30 seconds after previous post and I gave it 1 last try.
Launch in Windows 95 compatibility mode WITH the widescreen fix (and run as admin)
And it worked !
First time I've seen the character model in the opening cut scene lol
Anyone with this problem, give it a try.
EDIT
OK, the widescreen fix has nothing to do with it. I could not get it to launch again - no error message, just craps out.
I removed the widescreen fix and the game launches - models are still there.
Aaaand I've just removed the Win 95 compatibility... and the models are still there.
So god knows what fixed it for me
(And just to clarify, the game will not launch in ANY fashion with the widescreen mod)