ati3duag.dll is part of the ATI video drivers. Have you tried upgrading them to the latest version? If you have, have you tried downgrading them to various earlier versions? I had a ed up XFX (NVidia) card once that required a driver that was at least 18 months old to not crash after two minutes in any DirectX9c game (yep, that's RTW too). Worst support ever from XFX... I ended up having to buy a new card.

Your lack of memory will make the game very slow, but should not cause a blue-screen-of-death.