It was Dark Gravity Wave v.2 bug which affected Win32 wallets.
In some cases re-download of blockchain may be required (not always).

If you are still stuck at the block 1354 after wallet re-installation - please close wallet, remove everything BUT wallet.dat in the twilightcoin folder of your profile and run wallet again.

Please don't remove wallet.dat file accidentally! Copy it into another folder before removing any files.