I also have this problem. The only difference is that the Microsoft report bug prompt comes up.
It always happens after or during the Init Engine part of the load up.
radeon 9600 w/updated drivers
1.5 gigs ram
Athlon 1800
had problem with ati install, did the upak thing.
updated my xml. Only thing I saw was the load up til init engine take longer.
If I dont get this thing working, will have to return it.
How is it that this thing got Game of the Year awards, and is so lousy with bugs?