I just got the game and started playing it. Unfortunately the game always crashes right when I play hide and seek with the kids. I count to 2 and the game always crashes.
I have tried all the different compatibility modes. I have tried restarting my game. I have also tried uninstalling and running the installer as administrator. Nothing I do seems to work. Here are my comp specs:
Windows 7 Home Premium
AMD Phenom II x3 720
Nvidia Geforce 9600gt
If anyone could give me some advice, I'd appreciate it.

I believe there's a patch that fixes that.

I'm on win7 myself and the combination of compatibility settings that make Sanitarium work for me are:
-XP SP3
-256 colors
-Disable Visual Themes
-Run as Admin
I've uploaded my savegames to media fire a while back, they're here. There's a save at the start of each chapther, so maybe try with my save for that chapter in case you got a corrupted save there. Don't forget to backup your own saves first...