Blue Screen on Exit

[jens]

Hard to say, try updating your video card drivers first incase you have not already.
You could also go to My Documents/Penumbra Overture/Episode1 and delete the settings.cfg file to see if using the default settings will solve it.
Then yes maybe you will have to reinstall Windows, but only if you are experiencing other problems that makes is plausible that the windows install is broken.