I fear we do not know how to fix your very specific issue unfortunately.
If this is the only rig, you can use for playing the game, you might want to get a refund from Steam?
This should be possible as you didn't played the game yet (more than 2 hours).

Again sorry for all the troubles you got with this.

Thanks a lot for those hints! :)
Will reinvestigate tomorrow

It is an access violation in kernelbase.dll, so there is something going wrong deep in the operating system.
Thus the log does not tell us much for what we are looking and I am running out of ideas.
@Scott
Do you have any other idea?

I would really like to get a gist why it does not even manage to load any basics before it crashes for you.
Seems it's really an hard to resolve problem which I do not understand yet.

But can you save the game when it happens and upload the save game?
I hope it still happens after loading the save game, so that we have a way to reproduce.

Maybe you guys have a save game where the issue occurs you can share with us?

To retrieve and upload your save game, go to your steam installation and find the following subfolder:
<Steam Installation Directory>\Steam\userdata\<your steam user ID>\230190\remote

This folder contains all your save games, pick the one which starts with the level name you saved and with the modify date when you saved the game.
Pick both files, the one without ending and .meta and upload it here.

Maybe so we can look into the problem you encounter.

Thanks for your help

You're welcome! But I admit the issue seems harder to resolve than expected :)

Well it is important to note that the Switchable Graphics Driver is not the Catalyst Control Center and is a part ofthe normal ATI Radeon HD Display Driver.
So installing newest Catalyst Software Suite is not enough, you need to install the newest ATI Beta Driver (Radeon Software Crimson Edition Beta).
http://support.amd.com/en-us/download/desktop/legacy?product=legacy3&os=Windows+7+-+64
It's also recommend to remove the old acer driver first. However checking "Remove anything AMD" during installation should do.
There is a FAQ for Mobile Drivers:
http://support.amd.com/en-us/kb-articles/Pages/LaptopsFAQ.aspx

And after doing bit of research I see Acer is not very nice when you try to install it.
So the custom installation fails on a regular basis, but it can be by-passed by changing a BIOS option (yikes)
http://acer.custhelp.com/app/answers/detail/a_id/26985/~/can%E2%80%99t-update-graphics-driver-for-switchable-graphics

So I wonder how it simply worked when you installed it already?

However the above BIOS option should force the dedicated GPU for all applications, so if you are willing to touch it, then maybe try this first without installing anything, to check if forcing your ATI GPU fixes the issue for you at all.
If it does then it's up to you if you wanna change this just for playing the game or if you want to get the flexible assignment options by using the generic beta driver.

Switchable Graphics it self is a mess and Acer does add its own hurdles unfortunately :/
Quite some people had issues because the driver assigns wrong GPU to WftO, but if you not even have an option to assign the dedicated GPU manually with Acers driver it becomes way more cumbersome to fix.

I'm sorry for your inconvenience.

I did not understand which issue you encountered. You just made suggestions to improve something and not mentioned your problem :D
If you have lag issues with the UI, try starting the game with steam launch option -force-d3d11.
This should improve UI performance on your specific GPU.

This sounds strange, then the option should be there indeed.
Can you try to create a desktop shortcut for the game (by right clicking on WftO in your games library).
Can you right click on the shortcut and use option "Run on ATI Mobility Radeon HD 5650" if any.
Otherwise can you right click on your desktop and select "Configure Switchable Graphics".
Find "WFTOGame.exe" in the "Recent Applications" list and click on "Power Saving" on the right side to toggle it to "High Performance".
Do any of those work either?
Otherwise I need to wonder why you don't have options to assign GPU on your system.

Hrm, this usually means that you use a vendor (Acer) specific driver which has this option disabled.
Normally it selects the correct device automatically, however WftO is not in their list and it does often assign the onboard intel graphics to the game which can cause problems.
For some (rare) models it can be required to use the vendor driver but often it's not and the vendor drivers available are often outdated.
(I had my self an Acer Aspire and decided at some point to use the official generic AMD driver after Acer stopped updating it)
You could try to use the generic AMD driver instead, which might potentially instantly fix the issue but at least should give you the required option to force the dedicated GPU for WftO.

However before you try this, can you check if you can get the game started with this parameter:
-force-d3d9
It might help to make the game start, if it's running on the weak onboard intel GPU.
If the game starts with this option, do you get now an output_log.txt? Can you upload it so we can see which GPU was assigned?

Cheers