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When playing the game a while and trying to save, game just freezes and requires task manager to shut it down. Sometimes the game let's me save once immediately after start up.

GOG version comes with TFix 1.26 and I have also tried with 1.27 but newer version didn't fix this either. I have also tried setting affinity to single core and compatibility modes with XP. I tried googling this issue but couldn't find anything related to this problem. Do we have any luck here?
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Are you using quick saves or normal saves?

Also it might help if you gave your PCs specs :)
Did you install in Program Files? If so, uninstall and reinstall.
Tried running the game as Administrator?