From what I understand, this game was brutally panned for being a buggy mess when it was released, but this patched version is actually pretty smooth (I had one crash to desktop in about 40 hours of play, a couple of messed up lines of dialog and one or two quests promise gold as a reward, but still don't give you any) and that game is really a very fun RPG in a similar vain to The Elder Scrolls.
First, let me say, it's not as good as Oblivion, but Oblivion is a high bar to reach. It's probably about as good (but a little smaller overall) than Gothic III, but without Gothic III's ridiculous combat system (no danger of your high level character still getting mauled by wolves at the end of the game). The graphics are overall pretty good and varied with some nice effects. Character models and animation are not quite as good but passable. And forsooth, the dialog is mostly awful, but once you stop taking it too seriously, it's okay.
Despite being frustrating at first, I actually found the horse ridding part of the game to be immensity satisfying once you've worked out how to control the horse and what it can do. Charging a group of orcs, trampling them under hoof while whacking another with your sword from the saddle is a joy. Then circle around out-of-range and charge them again. Once you've leveled up your horse ridding skills, your horse can become your best weapon for some encounters.
Inventory management can also be a bit of a pain. You can sort your loot in your own inventory, but you can't do the same with your horse's. This can make figuring out which pieces of loot you can combine a bit of a chore especially with things like gloves and boots which all look almost the same.
Overall, I think this game is a worthwhile distraction at the price and I will certainly keep an eye out for Two Worlds 2.