One of our Steam users had found a fix for a crash issue that occurs as early as Day 1. Most common sign is crashing on reading the newspaper.
http://steamcommunity.com/app/262000/discussions/1/618457398969710468/
We've had enough cases of this that I've decided to sticky this here.
Apparently the app Raptr (http://raptr.com/) causes this issue by interfering with the game.
If you have Raptr on your machine and come across crashes, please try playing Gabriel Knight with it turned off.
Thank you!