Are you sure you are running a fresh install of a legal copy of Titanium that hasn't been patched or had any custom files added? Have you tried going through the options menu from the login screen? I have heard that by selecting the video card and just clicking ok on the rest, it can sometimes fix some issues.
It sounds to me like you might be having 2 different issues, but it could also just be the server you are playing on. Have you tried other servers? Try my server Storm Haven and see if you get the same issue. My server is running a new version of the Emu Code that includes a fix for the bug where you can't cast, chat or attack. So, you can at least see if that bug is you only problem. The other possibly issue sounds to me like Windows Vista is causing you problems. But it sounds like you already saw my post about some troubleshooting steps to try for fixing that.
Most importantly is to try another server and see if you get the same issues. Let us know.
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