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It's almost surely a problem with your video drivers. When a 3D game crashes consistently at a certain point, and disabling a video feature "fixes" it, you've pretty much nailed down the problem.
I would certainly try nVidia's latest Detonator drivers. You can always uninstall them if it makes things worse, and I've always found nVidia's drivers to be top-notch.
Just go to their website and download the latest version. I think they call them "Detonator XP" now even for older versions of Windows. The great thing about nVidia is that they make one driver install for all their products; just download the right one for your platform and it figures out what you need.
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