The latest one, 1.7
I'm still waiting for my cd-key, because without it you can't play online.

I bought it yesterday and played it today for some time and i must say i'm positively surprised. The camera movement still feels a little odd, kinda like with a slow framerate, but i tried turning every graphics option to the lowest and it still felt this way so i think it's just the way the cam is supposed to move. ;)
As for the speech, i really don't think it's as bad as most people say. Sure, it's nothing near professional, but it's not the worst that could happen. And while i played my first session i kinda felt like it even adds to the realism in some way. This might not be the case for everyone, but when you forget all that clear hollywood-blockbuster-voiceover-stuff and think about your guy just being some random mercenary, it isn't that disturbing at all to hear him sound like, well... just a normal guy without speech training i guess... But that's just my point of view after my first bits of playing. ;)
So, far, for 9.99$ i think this was a good buy!

It does grow on you. If you can get past the very minor issues and unpolished feel (voice acting isn't that bad.If you grew up with the FMV age of CD games you will have heard a lot worse) there is a very good game in there. However i have just finished it in just over 20 hours which seemed a little short, i guess i must have missed some side quests as i was expecting more with the 2 addons included.

Yes. And it's a POS without a crapload of mods to sort of fix it. I almost actually stopped playing the first time after an hour when teh pretty pictures wore off, then I was in denial for another 9h hoping that some decent quests would show up. When that didn't happen it got shelved until mods like open cities, Oscuro's Oblivion Overhaul, amongst other matured.
Bethesda did MUCH better CRPGs in Morrowind and Daggerfall. I actually STILL play both of these MORE than Oblivious. As a matter of fact after my last bout of Two Worlds I think that I've even played that by quite a bit more than I did Oblivious.
Remember kiddies, it's all about riding horses(OMG! Ponies!) AND killing things, but not both at the SAME time. (Actually I just ignored the horses as they're pointless.)

Well, I dont really see a problem in oblivion, every good game has bugs, but oblivion wasnt unplayable back when it launched saving a major bug or two (vampirism bug which you could fix by console or avoid entirely). I own oblivion deluxe gold from Steam, its all updated nowadays, and I must say, running it at 1920x1080 all details maxed looks just....freaking a-mazing.
I dont judge a book by its cover (like oblivion and fallout fall in the pretty category), but I can tell both are really enjoyable because I start playing them and I'm like "wow f**k its 2am already".
Games that make me seat for THAT long deserve a bit of praise. Same goes with Two Worlds, with the added bonus it has online play, makes me waste even more time. Every RPG has its flaws, and you're not buying Two Worlds before lets say, watching a video or reading a review, so get on it and let it grow on you, just my opinion.

For some reason it's not letting me quote you. Hmph.
I actually didn't use any "fix" mods like that and loved it. I also played without "teh pretty pictures" - my pc couldn't handle it without the graphics turned way down.
And horses totally have a point. Storage. =P

So, you're saying the horses are... mules? ;-)

Not just mules, but also warehouses. ;) I parked a horse in a city, conveniently close to a trader, and put a teleporter stone beside it; I then filled the horse up over time, gradually selling things off to the trader when the horse filled up. If I wanted to I could have even parked another horse there to double the storage. In the early game this was a great way of getting money for buying better equipment (although this is by no means necessary--you will find increasingly better gear throughout the world, albeit more gradually).
It may also be possible to leave items on the ground permanently (I will have to test that); if items on the ground don't disappear you could bypass the horses entirely and use the stones to create a literal mountain of loot. :)

OMG, mules, that made my day :-P

You just reminded me of my room in the Mage Guild in Morrowind... I would loot a dungeon, carry stuff until I couldn't walk, and cast Recall to go back to my room, and then spread the loot around. My room looked like a dragon's nest, I guess. :-D Good times.

If you're referring to my post, I'm not talking about bugs. I'm talking about poor design decisions made in a feeble attempt to widen their "audience", i.e. the console kiddies, which sort of backfired when they ended up with an M rating... (Clearly English is not your native tongue, as you picked up something about bugs from somewhere that no one else would have.)
Anyways, since you DO bring up bugs, yes they DID introduce a MAJOR bug which had to be patched, and Oblivious is nowhere near as stable as Morrowind but as usual Bethesda can't be bothered to patch it. Right now there is a code patch for Morrowind that can correct several problems that Bethesda declined to fix, and I suspect that one may eventually show up for Oblivious as well. It may not OTOH as Oblivious doesn't seem to have the staying power that Morrowind does.
As to why it needed to be modded to be even anything vaguely approaching enjoyable? Horrid level scaling, GIGANTIC consolized UI, trivial quests that eliminate the need for a game guide by just coming right and telling you exactly what to do and where to go, gross oversimplification of the game mechanics, etc.
The game was just a disaster as far as Elder Scrolls games go.

I love this game.
One of the most frustrating things for me with many rpgs is their terrible quest system.
However Two Worlds quest system is very user friendly. Most quests have points marked on the main map so you don't get lost. Also the portable teleport system makes exploring a pleasure, and this game has an enormous area to explore.
The bad voice acting actually grows on you and becomes part of the games charm.
I like the ability to instantly combine like weapons and armour to increase their stats.
The multiplayer is free to play and the world is setup totally different to the singleplayer game. It has a very friendly community (admittedly small) on the US servers that are very willing to help newbs with advice and items/gold.
Give the game a couple of hours before giving up. It really does grow on you.
I'm sure getting my $10 worth of enjoyment from this game.

I love this game I discovered the weapon upgrade combining feature by accident and I thought that was a very nice surprise. This game seems a great deal like Gothic 3. Gothic 3 was way buggier though and as far as I know without the Gothic 3 community patches it still is. Two worlds is huge and the voice acting is so bad it is good.
I have the complete Gothic series, Complete Fallout series, Complete Morrowind and Oblivion with the all expansions and I have to say I find Two Worlds is currently more fun and interesting than Morrowind, Oblivion, Fallout 3 and Gothic 3 and I have played these games extensively over hundreds of hours. Looking forward to the Two Worlds Sequel.

I think what surprised me most was the graphics engine. This seems to be the developers' first RPG and the engine seems nothing short of amazing for a first attempt. The graphics are outstanding, the world is enormous, the detail is high, everything is persistent, yet it manages to load up incredibly fast.
I was almost getting used to Gothic 3's horrid loading times thinking it must be an unavoidable necessity due to all the textures, etc, but then TW manages to look better and load faster at the same time.
Does anyone know if this is a custom engine, or did they license something from another company?

It's a custom engine. The same is true for the sequel's "GRACE" engine (which is probably based on this one). In-house engines are very common for smaller developers because of the significant cost of licensed engines, and many will keep improving the same engine and use it for multiple games over the years.