The fix...(that works as a matter of fact)
Hi again,
I have TOSC from the collection recently released as a 4 in 1 boxset. The main games are on DVD (BG1 & 2) and the expansions on CD's.
Anyway, what fixed this issue for me was changing the settings on the C.Panel's regional & language options, on the ADVANCED tab, changed the NON-Unicode language to English United States, and now the game works... finally.
So, if anyone here has a different language setting for Non-Unicode programs other then English, this game most probably will not work as it has in my case.
No patches, no mods, nothing whatsoever...
Besides, since I live in Israel, I do not really know what version I have, the UK, the US, the Canadian version... how can I know for sure?
There are patches for each and every version, so you may imagine what hassle it is to try each patch, each one in a different installation attempt.
So, good luck and Godspeed to you all

Life is short... play more...!