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Virtual drives!
I got this problem with v1.0 too before upgrading to daemon-tools v3.45 and alcohol 120% v1.4.8.1.2.2. XIII blacklists virtual drives and corrupts the Installation if such software are detected at installation. The game crashes to desktop at the beach level, giving the error message ??init.engine.CdCopy??
Possible solution: Uninstall Alcohol and blindwirte. Upgrade to daemon-tools v3.46, the try again. If this doesn't work, wait for a new version of daemon-tools.
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