I experienced a recurring crash in chapter 8 (The Village), and finally figured out how to get past it. I'm not sure this will work for everyone, but I figured it was worth putting out there.

Instead of running the game through my desktop shortcut I used the "sntrm.exe" file in the sanitarium folder. This caused a graphics glitch, but despite it I managed to play through the spot where I was having the crashes, and was able to then save, exit and restart the game through the shortcut, fixing the colour glitch.

I am running the game on a Win 7 64-bit, and I can't vouch that this will work for anyone else. Still, it might be worth a try.