SOLVED: For me anyway. My sound card PCM level was too high.
It was on 48KHZ. I lowered it to 44.1KHZ and sound channels from 6 channel to 2 channel and the game starts, runs fine. I have been playing it for over an hour now with no Problems.
My sound card is a Asus Xonar D1 that can be set to 196khz, 96khz, 48khz, 44.1khz and the channels from 8 to 2 channel. I run at 5.1 surround. For this game which is a bit old set the sound to 44.1, 2 channel & 5.1 ..worked for me.
On the Xonar cards best to turn off the GX mode for this game.
So turn off the GX mode first if you own an Asus sound card. If not lower your sound cards sampling rate. or try both. It solved the problem for me. hope that helps