Hello friends, I have that problem too. I am with latest community patch, with 4gb patch for memory, administrator and xp sp3 compatability on both executables s2gs.exe and the main sacred2.exe (made hours of tests in different combinations) Server exe is also patched with the 4gb patch.
Regardless the fact that I play SP and how much I flush memory CTRL+F1 it says Connection lost after a time - sometimes it is 2 minutes sometimes it is hours. Overriden from nVidia Control panel the antialiasing and filtering (the movies and loading screens now show - before they where black). also the files LaptopGaming_xp.dll and LaptopGaming_vista.dll - I had renamed with .BAK, also I installed that mss32.dll file (already was with "g" one but nevermind). That covers all on the game, this "configuration" gives me the longest play for now (no windowed mode - didn't affected the error 10 issue). Physics (latest version) and Elite texture packs are both actve, also V-Sync, the executable is with options -nocpubinding -skipopenal.
I am using Win7 x 64 bit, nVidia GTX1060 6GB, Core i5 4x3.40gHz, 8GB RAM
I am at the region in the north "Crystal Region" with my Inquisitor, and I'm struggling with the sad quest. Usurer was bugged, but latest community patch fixed that and I have finished it successfully.
This is one of the most beautiful games I have ever played, actually the most beautiful and finished world I have ever seen (I love and play both sacreds and for me they are the best in this genre). Honor to you for the continued support. You have done miracles so far. If there is any fix, I would participate also in testing of it.
Strange for me, after this error 10 - in my brain-box got shape the idea that there is actually problem with server - main exe connectivity, maybe response time? (all is allowed application in my antivirus firewall blah-blah software and I even disabled it for the tests). Nevertheless I am starting to think, that it freezes, because it tries to connect, to the server-side of the game (that exe is active in memory also - had not crashed). Before it stuck like that for infinite time, now it times-out and gives this error (amazing job with the community patches).
P.S. Am I right for the s2gs.exe to be the server-side?
Best Regards and happy hunting!
P.P.S. Before when it freezes and the audio and world continues, the Inquisior starts talking in the background Did anybody notice that, when the game is on pause "P", the menus cannot be opened. Are they on pouse too? is it like that for you too?