Since you are playing on Steam, please check to see if you have a prefs file in your Steam directory in steamapps\common\the walking dead.
If you do, this file could be cause of your problems. Your prefs file should only be in your Documents\Telltale Games\The Walking Dead directory. Please remove the prefs file from your Steam subdirectory (copy it to your desktop, just in case) and run the game again. If you see the proper choices, you can delete the prefs file now on your desktop. If you do not see the correct choices, close your game and delete the prefs from your Documents\...\The Walking Dead folder and move the prefs file from your desktop into this folder.
Also, reinstalling Steam has helped a lot of people play the game and avoid crashes since Steam started converting game files recently.
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