Game Freezes when i press Esc , bottom half textures missing

[urizen]

i have the CD retail box version and my graphics card is an ATI RADEON HD 2900XT. When in game i press Esc to go to main menu to save, the main menu screen appears and the game freezes there and i have to terminate the application. Task manager lists Penumbra episode 1 as not responding...Also many items in the game (e.g. bottles, lanterns, barrels) have no textures on their bottom half... strange....

I applied patch 1.02.. it fixed the Esc bug but ruined all the textures so the game is unplayable... the bottom half missing textures not fixed with 1.02....

I also don't understand why they are not making a patch for the CD version... they did so for Black Plague...