This awful buglike, managed to keep me out of playing this masterpiece. Everytime i saw those still, wandering cloaks, couldn't drop the feeling that i am
playing some bad programmed b-game.
Probably by now, most of the players would have found a solution to this but i write what i found that worked for my win 8 PC perfectly.
Uninstalled all C++ redist (2005, 2008,2012 was installed on my PC) and dloaded and reinstall ALL packages (2005, 2008, 2010, 2012, 2013, 2015).
Cloak gfx, physics, position ( cloaks remained up even when you die!! :-P ) etc all worked fine.