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OK problem resolved.

I changed my Windows sound format settings (control panel --> sound):

Crashed with 24 bit, 192000 Hz (Studio Quality)
Ran fine with 24 bit, 96000 Hz (Studio Quality) or...

I'm having the same exact problem. I tried many things and nothing seems to work.

Graphics card: XFX GeForce GTS 250
Using latest Nvidia Drivers (285*)
Quad Core Q9550 w/ latest BIOS to...