It really does sound like a memory problem. It took me a hell of a long time to get the game working correctly after trying everything. There are definately issues with the DirectX modes. I ended up playing in software mode (which looks great anyway) even though I've got a Hercules ultra II prophet.
Even then I got occasional crashes if I started up the game without all background processes except systray and explorer shut down (Running with 256mb memory). Stick with it, it's worth it once you get it working.
Graham
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