The release of Episode 2 of The Walking Dead has unfortunately been marred by bugs that are preventing many users from accessing Episode 2, including me.

The primary problem (and the one that I’m experiencing), is that choices made in Episode 1 are not carrying over into a playthrough of Episode 2. According to this thread on TellTale’s support forum, it appears that the problem stems from the prefs.prop file that is created by the game. Some users have reported being able to get around the problem by copying the prefs.prop file from their Episode 1 save location (in the documents folder) into the location where Episode 2 is installed. I attempted this workaround, and was unsuccessful. We will have more on this as it develops, and a proper review of Episode 2 of The Walking Dead on PC as soon as an official workaround or patch is released.

Article source: http://www.vgrevolution.com/2012/07/walking-dead-episode-2-plagued-by-bugs-on-pc/