I assume you might be using Windows 2000. A lot of people have the same problem. If not, get new video drivers. It's probably because your video drivers are not DirectX compatible.
At the gypsies, I didn't have the 300gp to pay but i tried to anyways. They said they understood that i couldn't pay or something like that. I don't think it has affected anything major. It could affect the type of reward you get from them for retrieving the serpent wand or possibly even the end. Who knows? Good Luck.
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