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Didn't think 1.03 was in public release yet?
Are the crashes repeatable, ie if you load the save in doe sit always crash around the same time?
 
Okay let's try some standard things.
1) Make sure you have the latest patch for the game.
2) Rename the AVI folder to AVI_back
3) Set the color depth to 16BIT
4) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.
5) Update your Windows, update your Video card drivers and audio card drivers. Then repeat steps 1-3.


Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
To be honest I am supprised you can run the game at all.

Your have less than 256 meg ram, your Direct X is out of date, your video driver is way out of date, and your operating system does not have a major service pack. :)

aside from that. :)

I would work on updating drivers then you may want to consider adding some ram, pretty cheap these days and it will be the thing you can do the cheapest to extend the life of your machine.
 
Direct X and your operating system you update by going to the windows auto update website, there should be a link on your start menu.

The video driver you need to go to the Mnufactors website and DLed the latest version then install it.

in your case
http://www.s3graphics.com/