The trick is this:
Log out of game.
Shut vent off.
Go To:
Control Panel
Hardware and Sound
Device Manager
Sound, Video and Game controllers
Right click on your audio processing unit
Disable (do not close this window you will be back on it shortly)
Start Darkfall up. Load all the way into game.
Alt tab to go to desktop.
Once back at Desktop ReEnable your audio processing unit.
Start Vent.
Go back in game.
All done, Enjoy!
This is the only thing that makes the City bareable.
As well this reduces the frequency of the Virtual Memory Error, and my lag during high usage at sieges is greatly reduced to the point of being playable as long as its not 1000 people in one zone grid.