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The game runs smooth, except for when it shows your character. I tried adjusting the lighting and shadows on him but neither worked. I found this out by covering up the screen with the character and inventory windows and suddenly it was smooth. Also the cut scenes run smooth until your character comes into view. Any help with this problem would be appreciated as this makes the game unplayable.
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I think I have the same sort of problem - when a number of characters are visible on screen, my fps drops to 20 or so, which is very frustrating keeping in mind how old this game is...

What to do!?

9800GX2, Win7 64bit.
I found several solutions, hope one helps:

One suggested:
Try resolve it by going to the nVidia Control Panel, Manage 3D Settings, selecting the game, then changing "Antialiasing - Gamma Correction" to Off. After that, while there were one or two periods of unexplainable lag, I got 60fps very reliably otherwise.
Another said:
Redemption may have issues with newer Nvidia cards. Javokis, the creator of Age of Redemption, E-Mod, Wodal ect had this very issue with his 8800 and the only solution was switching to his ati card.
Another claimed:
Strangely if I play the game with firefox open it fix the problem!
The last one was a bit crazy and doesnt make sense, but hey . . . if it works, who am i to complain.

Dont forget to mark it as solution if it helps, so others can also use one of the above solutions.
Post edited June 26, 2011 by Mv.c9
Got the same problem but not the first time i ran the game and...
Strangely if I play the game with Firefox open it fix the problem!
Really weird but it worked for me and fix this strange frame rate drop !!
An first time i was running Firefox and didn't notice this problem.

Doesn't make any sense but i won't complain ^_^