The "infinite movie loop" is a common problem, and it happens with different movies. You might try re-installing, but a simpler solution might be to try this: Hand over the invitation, enter the Palace, and watch the movie. Immediately Pause the game, and Save using a different filename. Now Load the Save you just made, and hopefully you won't have to watch the movie again.
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Volothamp's Comeuppance
Everything you ever needed to know about the entire Baldur's Gate series......except spoilers.
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