LucasForums - Issue with Cutscene: GAME CRASH!

I have recently purchase PSYCHONAUTS on steam.
D/L the 5.5gb, installed, ran the game.

The game runs, and lets me explore the campground. The first set of cutscenes run well, no drop in FPS or anything. I enter the VERY first mind of Coach O, complete the training, and get to the end of the rail.

In the final room, I go into the hallway in the door, on the right. A cut scene runs for 2 seconds, the game crashes, boots me out and says that a error has occurred.

I have run this game on dif. compatibility modes from windows Vitsa to the windows XP, ran in windowed mode, 256 colors, and changed my moniter display from true color (32 bits) to high color (16 bits). and still, it crashes on that one, single solid INSTANCE.

My Specs:
Windows 7
Ram: 4gb
64 bit type operating sys.
Intel i7 processor
ATI Radeon HD 5700 series

Event log of this app:

Quote:

Faulting application name: Psychonauts.exe, version: 1.0.4.0, time stamp: 0x4e851dda
Faulting module name: KERNELBASE.dll, version: 6.1.7601.17651, time stamp: 0x4e211319
Exception code: 0x40010006
Fault offset: 0x0000b9bc
Faulting process id: 0x22a8
Faulting application start time: 0x01cc84465c8a1879
Faulting application path: C:\Program Files (x86)\Steam\steamapps\common\psychonauts\Psychonau ts.exe
Faulting module path: C:\Windows\syswow64\KERNELBASE.dll

Any help or idea helps.....