Right now, the launcher is unable to download WSE2 files from cmp's dropbox, since it expired. So, I stopped the launcher from trying to download these files, but apparently that has caused issues running the game for several people. From my understanding, everyone who has issues with running cRPG in WSE2 does not currently have WSE2 files. (and can't download them from the launcher for the reasons stated)
For all you folks out there missing WSE2 files, here are the files that are needed
https://dl.dropboxusercontent.com/s/fpj310oukbyz34q/01.09.82.zipExtract the files inside to C:\Program Files (x86)\Steam\steamapps\common\MountBlade Warband\
https://dl.dropboxusercontent.com/s/cge9m78fu3ojfej/crpg_beta_core_textures.zip. Extract the files inside to the directory:
C:\Program Files (x86)\Steam\steamapps\common\mountblade warband\CommonRes\
https://dl.dropboxusercontent.com/s/ftt76avassq94j5/_betaui.csvCopy/cut this file from its download location to the directory C:\Program Files (x86)\Steam\steamapps\common\mountblade warband\languages\en\
Updated post will all of the needed files/locations they must go.
Best case scenario, we can get the missing files back from cmp (which ought to fix couching), but I'm still waiting on chadz for a response.
Make sure to download the newest launcher off of
http://c-rpg.net/cRPGLauncher.exe! The old launcher will not update the game.