I started a new game of VtM and I got the 2 in the very first fight but when I went to the mines there was only ghoul rats and no demon at the end, Ive restarted a few times and read through the other threads here that seem relevent.

OS is Vista 32 if that has anything to do with it
Looks like Its working now

I've had a similar problem to this before. When i first got the game back in who knows when (I pre-ordered the game so it was a looong time ago), I had no problems with it. I think i was using windows 98 at the time. Then i wanted to play it again a few years back on xp and i noticed that everything was fine until i loaded my game after i died in the mines. When I went back to the mines there was no one to kill! Then I downloaded the gog version recently even though i still own the cd just to see if maybe their tinkering with the game may have helped. Nope. running on windows 7. No baddies in cave.Still sad face.

This issue was fixed for me by setting the .exe to always run as admin, and also setting the folder the game is in to allow indexing.

How do how change the setting in the folder to allow Indexing?

Right click > Properties > General > Advanced > Allow ... index[ing]