Oh, that's the issue then. 1.0 saves will not work with 1.1.
There are new scripts that will conflict with things.
When you go in the basement, it's supposed to get DARK, and you can't see far. But the problem is, if you don't have that switch turned on when you make a new game, it will break.
So sadly, the only way to fix it and experience that content is a fresh new save.
In the casino did Dala say it was dark but it didn't get dark?
Sadly I can't fix that, the only way it will work is if you hit new game, play all the way to chapter 2.
If you open your bestiary, your music box and stuff, it's probably all broken as well.
Your skills and items also might be on the old 1.0 Data. 1.1 is much more balanced and fun.
So I suggest just starting fresh and getting back to that basement :)
1. Love the new combat 2. Loved chapter 2 and all the side missions 3. Only negative(?) feedback i'd give is I wish more game over scenes were fleshed out. Like if you lost in the ironfoot docks side quest there would be a scene of another adventurer coming down to the docks to find you in the box and turn you in for a reward or something along those lines. Kind of a shame it only happens on the end of chapter bosses but I get if this would take forever to do for more scenarios.