Patch 0.1.2.0 is predominantly focused on providing a workaround for this problem. Once downloaded, on Windows systems we need you to perform the following steps. Please be warned that this requires modifications to the registry. If you are inexperienced you may want to wait until a permanent fix becomes available. Performing these steps is taken entirely at your own risk. We STRONGLY RECOMMEND you backup and personal files such as family photos before making changes to the Windows Registry.
1. From the Start Menu, type "regedit" into the run/search box without the quotation marks and press Enter. This will launch the Registry Editor.
2. Using the tree view in the left panel, expand Computer / HKEY_CURRENT_USER / Software / Games Foundry and click once with the left mouse button on "Folk Tale". This will list a number of items in the right panel.
3. IMPORTANT YOU READ THIS CAREFULLY. Ensuring you have ONLY the Folk Tale entry highlighted in the left hand pane, right click it and select DELETE.You will be asked to confirm the operation ( including deleting subkeys ), which will remove the entries in the right pane, and "Folk Tale" from the left pane, leaving just "Games Foundry". Press the Yes button.
4. Close the Registry Editor.
5. Open the Steam Client and go to Library. Right click on Folk Tale, choose Properties, then the third tab 'Local FIles' followed by clicking on the 'BROWSE LOCAL FILES...' button. This will open Windows Explorer to the local folder on your PC where the installation files are stored.
6. Left click ONCE on "Folk Tale.exe" ( Application ) to highlight it. Now press and keep held down the left SHIFT key ( left ALT key on Mac? ). Double click on "Folk Tale.exe" to launch the application, keeping the SHIFT key held down all the time. A screen resolution dialog should allow you to select an alternative resolution, as well as full screen or windowed mode.
Folk Tale will rebuild the Windows Registry entry automatically the first time you run the game.
We have worked closely with a number of players to develop this fix, and confirmed it works. Please let us know if you encounter any problems, or indeed if this fixes your problem and you are now able to enjoy Folk Tale for the first time.
UPDATE 11 Mar 2014
It appears some applications ( especially Samsung multi-monitor controllers ) can cause problems with hogging the graphics card. Please see step 2 in this topic