Ubuntu 12.04 - Fix Torchlight Problems

I recently bought the humble indie bundle which includes Torchlight 1! After installing the game in Ubuntu 12.04 with the shell script, I noticed that I always had a multitude of issues to fix.

Graphical issues
When launching the game there were graphics problems such as:

• Resize my resolution. 
• Loading offscreen or only partially on screen. 
• Just not loading.

Setting the game to go fullscreen would only make things worse.

To 'fix' these issues, simply log out and login to ubuntu with 'classic no effects' mode before relaunching the game. All issues are now gone (except for characters having no faces, which I think is an in-game issue).
Alternatively you can install and use the latest gnome interface and it works fine in that as well.

Portal Crashes
Going through any portals would result in a crash. I fixed this by reinstalling the game with a later release of the sh file and installing libtxc_dxtn through the synaptik package manager. I also created a .drirc file in my home directory with the following contents:

Fix Floor 19 Crash
Find pak.zip on your computer. (/usr/local/games/Torchlight/pak.zip)
Within the archive navigate to /media/particles/Textures/Trail/
Copy Trail 36.dds and rename to (which will replace) Trail37.dds.
This solves the issue which is caused by the Trail37.dds texture not being a power of 2 in size.

Video Demo of Fix

Sources

Floor 19 Crash