After some extensive testing I think I figured out the problem 

If you comment out these to sections of code the script will run as intended. 
elseif ( player -> hassoulgem, "Hunger" )	Messagebox "Allow the crown to feed on the soul of the Hunger?" "Yes" "No"	set soultype to 8	set state to 2
elseif ( soultype == 8 )	Messagebox, "The crown consumes the soul of the Hunger"		player -> removesoulgem, "hunger", 1		set hunger to ( hunger + 145 )		set power to ( power + 250 )
The problem seems to be the use of hunger as a variable and the creature ID hunger, the morrowind scripting engine doesn't like that very much.
It is probably better if you change the hunger variable to somthing else like Crownhunger.
Hope that helps.
Sy 

bliviongate: