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The achievement we know is not working properly, and we are looking into how to best address the problem.

The other problem is unknown to us however. Could you please make a proper bug report in the tech support forums complete with step by step instructions on how to reproduce it?
 
I also have been having a similar issue in Dungeons and Gargoyles. Both times I reached the battle with the adventurers, all would go well for a while. Then, my left speaker would cut out followed shortly by all the characters on screen disappearing. Some gameplay continues, I can still hear some effects going on. When I press keys to cast something, the icons in the lower left would highlight, but very slowly. I had to close Magicka from the desktop.

Are you using USB connected speakers or headphones? Please try unplugging them if so (if the problem persists).