ok, sorta figured this out.
I downloaded the grimdata.rar patch from
http://www.lucasforums.com/showthrea...=195709&page=2
(original link from OP is broken. On page 2 Scorpius gives this link
http://grim-fandango.servhome.org/do...h/GRIMDATA.rar
anyway after patch the game still crashes when i try leave the circular intersection in year 2, without 3d hardware acceleration, my original saved file had it off but when i changed that before game loaded (press F1 at Lucas arts logo screen) then load the game, the sound stays on. If i wait for game to start, then put 3DHA on, sound stops working...
I don't understand it. but it works...