Very unpolished at its European release. Mostly good fun.
Graphics are quite good, and so is the sound. I have no objection to the voice acting either.
Unfortunately being an Oblivion clone, it suffers from the same sort of issues. Does the word level scaling ring a bell? Loot gets generated based on your level, and it appears few items and their locations are hardcoded, meaning dungeon crawling becomes a rather uninspiring affair after a while. Boss fights
can be very disappointing, perhaps because of balance issues, perhaps because of lack of scripting.
This is where Two Worlds II really gets a little embarassing. It is abundantly clear the game was released in Europe in a very unpolished state. Balance issues. Typos in books. A few instances of voice audio and subtitles that don't match (it seems they updated dialogue at some point and updated only one side of the conversation with the voice actor in question), leading to a few rather bizarre (main quest) conversations.
There are rather nice innovations though. There is a Guitar Hero style minigame to play instruments. Picking locks is entertaining. The magic system is very interesting and the effects look really nice.
With a few patches done before its released in the US, you should not dismiss it.