Have you tried re-installing? I had a problem yesterday where it would crash at certain resolutions. After I re-installed, the problem went away.
Edit: Here are some screenshots showing what it looks like for me in 1280x1024.
As you can see, I changed Mode to 5...
I just changed mine to 1280x1024 and it ran fine. Only problem was with the text....it becomes completely unreadable.
Edit: Figured out what was making it unreadable...still had the ddraw.ini set to 640x480 :S