Sorry about the uncomfortable moments - unfortunately, yep, the engine doesn't always recognize how close you and your party members are. Teri is supposed to be a little annoying, but I think the parents bit might probably be over by now. Of course, now that it's over, here comes another bit, which has to do with Severn being in the party.
Good luck with your game. If you're not bored by the end of it, I recommend trying HoW and TotL expansions, too - after chapter 3 or after chapter 4 or after chapter 5 would work(so that you still get the proper finale from the original game).