I have the same problem and almost the exact same comp specs as gazhan, except it happens to me during the first mission. The tutorial ran perfectly smoothly on max settings, so does the first mission for a bit. The it just crashes and I get the Torque Memory Error and this crash report:

Problem signature:
Problem Event Name: APPCRASH
Application Name: BoneCraft.exe
Application Version: 1.0.0.0
Application Timestamp: 4f0ccdc6
Fault Module Name: msvcrt.dll
Fault Module Version: 7.0.7600.16385
Fault Module Timestamp: 4a5bda6f
Exception Code: c0000005
Exception Offset: 0000abb1
OS Version: 6.1.7600.2.0.0.256.1
Locale ID: 1033
Additional Information 1: 0a9e
Additional Information 2: 0a9e372d3b4ad19135b953a78882e789
Additional Information 3: 0a9e
Additional Information 4: 0a9e372d3b4ad19135b953a78882e789

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No crashes in fantasy mode but when I get to a certain part of the stage some of the buildings disappear.


EDIT: Also I tried putting the settings on the lowest, makes no difference.