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I have never had it crash with diplomacy but it does carsh on my Win 2K PC with 160 MB RAM when I leave the program running and leave for a couple of hours. I think it is the energy saving features that crash it. It has never crashed in the 4 months since I installed Win 2K until now. I disabled all energy saving features and will monitor it
 
US vesion 1.07 crashes randomly...

I've noticed the diplomacy crash, but it hasn't bothered me too much. I find that Europa crashes somewhat randomly after I have been playing it for a long period of time. The game will suddenly freeze up and then force quit itself. I have pentium 2, 64 megs of ram, win 98. Fortunately the autosave feature limits the casualties of these crashes.

I've also been bothered by Europa's lack of good background music. Running winamp doesn't allow Europa to start up. Inserting a CD after Europa is up and running causes the game minimize and return to the desktop. I find I can then play the CD through CD player and return to my up and running game. It is a hassle though, and it would be nice if Paradox could make it easier to play music while gaming.
 
I note that a lot of people are quoting 64MB Ram in their system information.

I initially tried playing this game with 64MB and found gameplay to be poor due to memory leak.

Have just installed a further 64MB and it's a whole new game. Memory is just so unbelievably cheap, and it might answer some of your problems.

Storm.