Hello, I'm playing GK3 on Windows 7, and I just encountered the 'unknown fatal exception' error during Gabriel's first dream on Day 2. I see it's a common problem, and from what I understand there are no fix as of yet for my OS (or are there?). Anyway, I'm wondering if this is a persistent problem throughout the rest of the game. Are all of these .bik cutscenes going to crash like this? I realize I can watch the videos with the Rad Game Tools player. I'm fine with doing that for this video, if it is indeed my only option, but I really don't feel like dealing with this everytime a cutscene pops up. Thanks!

Try running the program in a different compatibillity mode. The game had a knack for crashing at that exact point if your computer wasn't up to speed back in the days, so a different compatibility might solve it.

I had the same crash at the end of Day 2 where the dream cutscene plays.

OK, I'm not sure which one got it to work but I downloaded and installed The RAD Video Tools
and copied the binkw32.dll to Local Disk (C:) / Windows / System32 and it worked.

Hope this helps someone.

(link: http://www.radgametools.com/bnkdown.htm)

EDIT: My system is Windows 7 Ultimate 64bit, nVidia graphics card.

EDIT 2: It seems that that cutscene can still crash so try a few times if it crashes. For me it worked 4 out of 5 times. Strange stuff...

Change the game's resolution back to 640x480 - that should fix the problem.
I had the exact same thing - .bik errors - whenever a video cinematic came up (I had changed the resolution to 1024x768).
When I changed the resolution back to the default all cinematics played fine.