Have you deleted the WickedIsland folder in Appdata\local ?
If you haven't, delete the folder and all of the contents, it will delete your saves and any game settings, but it can fix a lot of issues by nuking that entire folder. Don't try saving your save games, they can have old data that just screws up everything.
Screenshots are saved in that folder as well, so if you want to save them, copy them out before you delete the folder.
If you have already deleted that folder in appdata, deleted the game files and started out 'fresh', I don't know what else to tell you, I haven't had any problems just starting the game or loading saves.
I tend to nuke the appdata folder every time there is a new version, it means a whole lot of grinding out crap again, but trying to load saves or use game settings from previous versions has never worked out.