OK, I'm running out of suggestions. I suspect this is some funny consequence of v1 that's persisted through the partial reinstall, but I can't be sure.
Try this if you like. Start a new game of ToB with version 2 installed. CLUAconsole yourself to the grove:
Kill the demons (CTRL-Y if you like), enter
and then try talking to the heads.
If that doesn't work, I suspect your install has got corrupted.
I was more being diagnostic - i.e. trying to work out what's wrong.
But sure, you could try either of those.