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I am getting the same error too. there is a huge lag (about 2-3 seconds or so) whenever I attack/dodge in combat... which makes the game unplayable.
I have an ATI card and this is due to PhysX used in the game.
PhysX runs on the cpu in ATI cards and is extremely horrible in some cases if not disabled. however it seems that the devs were lazy on this game and PhysX is used. So until devs patch it or there are some 3rd party hacks...it seems the game won't get better.
It may be because you're using a crack to run the game... If you are find another one 'cos the one you're using is probably not working correctly... And if you've pirated this game buy it if you like it.