These are my computer specs tell me if you need to know anything else.

My OS is Windows vista Home Premium 32 bit
Memory: 3070MB RAM
Processor: Intel(R) Core(TM) 2 cpu 4300 @ 1.8GHZ (2 CPUs), ~1.8 GHz
DirectX: 10
Graphics Card: ATI Radeon HD 4350


Ok I've tried it in compatibility mode and as an administrator and the game freezes up at the title screen (New game, load game, options, etc...) I can hear the music continue to play, but I am unable to move my mouse and pressing anything on my keyboard doesn't seem to work; the only way i can exit is Ctrl + Alt + delete.

I've also downloaded all of the patches from here

http://www.gog.com/en/forum/arcanum_of_steamworks_and_magick_obscura/what_patches_should_i_install_on_a_fresh_gog_install/page1

if anyone has any ideas please share! :D

Try running the game as a default install. If that works you know it was one of the extra items.
Then it becomes trial and error figuring out what messed it up.

If you're using the new installer that was updated for win7 they said it should be fully compatible with mods. Could turn out to not be 100%.