Found a workaround using FileMon.. Looks like Demigod.exe was loading the following DLL:
C:\PROGRAM FILES\COMMON FILES\LOGISHRD\LVMVFM\LVPRCINJ.DLL
Not sure why it was trying to load this file (some kind of process injection?), and not sure if it was installed as a result of my mouse driver or webcam... Renamed the directory and everything works great.
Hopefully will help anyone else having this issue.