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Changing video settings in options doesn't do anything and while remaining in the game it shows that the settings you chose are the same if you exit options and go back in-if you quit and restart the game all settings have reverted to the minimal basic settings for resolution and quality. People have reported the same problem with the steam version.
Yep this is one of the outstanding bugs that devs ignore. New bug introduced is one checkbox staying through all 4 options tabs.
The settings appear to be stored in the file %InstallPath%\Crossroads Inn\Settings.txt. If I open the file, the settings seem to be correct. And at least the resolution is easy to confirm in-game, if your display shows you this information (mine does). So the bug is that the options menu doesn't load the settings from the file, although the game apparently does.
It seems that GUI is displaying some stupidity instead of what is in config files.

I work in IT as QA Tester and what I see in this game is beyond me. Who allowed to release this game in this state? It seems that there were no testers or not enough testers.