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Thanks for the verification. I did some more testing as well with some interesting results.

The memory error only seems to occur when both the retail box version and steam version are using the same saved game location when using SteamDS2AllSaves to load the game. Even though both exes are essentially identical (apart from a slight name change), something is causing the launcher to hang when trying to parse the saved games. There must be some other information concerning some obscure parameter that is saved with the saved games that causes this glitch.

Using the same save location for the steam version of DS2 using both the original exe and SteamDS2AllSaves doesn't seem to cause any issues. Both exes ignore games saved with the other version, they don't appear as possible choices. So for an owner of the steam version of DS2, there should be no problem directly using SteamDS2AllSaves.exe without the shortcut.

So I'll test this for a while by deleting my original Dungeon Siege 2 installation which doesn't appear to be required since I've used regedit to change the registry location of Dungeon Siege 2 to the steam version so Broken World can find it.