I knew this release was too good to be true :(

Tried this on Windows 7 64 bit with a Geforce 580.
The game stops responding after you fall down into the forest and it "loads" the next area.

Any solutions anyone knows?

Same Problem here. Tried several resolutions and compatibility modes. nothing seems to help.

Cataclysm, do you have the same card as Aialissa or something else?

The game works on Win7 64 so I'd do the usuals... update graphics card drivers, scan for malware etc (this has surprisingly affected my games before)... As for compatibility mode, I didn't have to use it, so try disabling it or only choosing run as administrator. I have no idea why that would affect the game, but stranger things have happened.

Failing that, try GXSetup.exe in the Rayman 2 folder, try changing it from Primary Display Driver to Graphics Card Name [\\ \DISPLAY1]. This is how I chose to run the game in the first place and it went without a hitch.

I have tried all the usual suspects (i also am a driver updater nut so they're always up to date).

I have a feeling that it has something to do with either Sandy Bridge processors or SSD/Raid disk setups; Cataclysm id like to ask if you've got either of them, cause ive got both and id like to narrow this down.

Suppose my first post was rather unhelpful.

I don't seem to have anything in common with your system except the Geforce GPU.

Win 7 32bit
Geforce 260
Intel Core 2 Duo.

Tried drivers, compatibility, administrator, and every combination of settings (besides every resolution)
Turning off application controlled settings in the Nvidia control panel has nothing to do with it either.

SOLVED:
followed step 3 of the common troubleshooting methods.

3) Many problems can be fixed by installing the June 2010 DirectX runtime package. Some older games aren't compatible with the libraries included with current releases of DirectX and this package should help. You can find the installer here.
(http://www.microsoft.com/downloads/en/details.aspx?FamilyID=3b170b25-abab-4bc3-ae91-50ceb6d8fa8d)
You will have to extract the files into a selected folder, then open that folder and launch the DXSETUP.exe file in order to proceed with the installation.

Solution to my crashing was posted by user Manu270891 in another thread.
To anyone who will read this thread:

You must not have custom DEP enabled. Revert the DEP (Data execution prevention) to its default state if you are experience the same crash that i am.

Good think that I ain't even touched that thing. In my computer the game crashed first time, but I fixed it by just changing the resolution to my native desktop resolution (1440x900) and after that the game runs fine, no crashes in startup or between loading levels, nothing.

Alternativly, you instead of reverting DEP to default, you can add Rayman2.exe to to programs DEP ignores, as thats what is causing it to crash. This methods only really necessary if you have to have DEP disabled for other games too like I have to (In my case, The Sims 3. If I have custom DEP disabled, DEP causes the game to crash)