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rename the AVI folder to AVI_back, set color depth to 16BIT, turn off any background programs like virus protection.
What operating system are you using?
 
The memory was why I asked what operating system you were using.
Since 128 maybe acceptable for win98 but XP uses 128meg on it's own. So 256meg is really the minimum.
However that may not be the problem, since you say it worked fine before.
You also say it works fine with EEP.
So I would say one of the files may be messed up either from EEP or another reason.
My suggestion then is to manually uninstall EU2 following the directions in the self help thread. THen do a fresh install from the CD, then patch 1.07, then the latest beta patch.
 
Buying the ram will make a HUGE difference for you.