Two fairly simple steps:
1)Install an (relative) updated Games for Windows Live client as the one that comes with the game on Steam is broken. It doesn't even need to be started in order to play the game, but FO3 won't launch without it. *shrug*
2)A minor .ini/.cfg fix to ensure that the game only runs on one processor. It doesn't like multi-CPU usage.

Just another tip, if you launch the game with FOSE it will disable GFWL completely and seems to help with the game crashing on exit sometimes.

This pretty much sums up all Bethesda RPGs but fortunately there are free mods that remedy this.

Thanks for the tips guys. So basically FOSE and install all the mods, and also the .ini tweak?

Have you tried using Tale of Two Wastelands? It ports Fallout 3 to Fallout: New Vegas, and all the engine improvements it brings with it. It could be a bit more difficult though, since it also uses the FNV damage threshold mechanics, but I think those are much better than 3's method of pumping high-level enemies with insane amounts of HP, though I have yet to meet some of the insane Broken Steel enemies yet so I'm not sure if they got fixed for the new machanics.

Agree. It's just not Fallout 3 but some other RPGs are similar too. If you only focus on main/story quests or side-quests, those RPGs may not be enjoyable games.

F3 = Just wander and explore wasteland. When you are tired of wandering and exploring, it's time for the quests. But don't rush to complete all quests one by one.

My gameplay style
quest (any quest) -> free-roaming -> quest -> free-roaming -> ....

F3 did have some strengths. The city was really dull and monotonous, with artificially placed heaps of rubble blocking the streets so that you had to take the boring sewers, but the suburbs were a delight to explore. I particularly liked the implied stories you encountered in houses, like charred bones of two people embraced on a bed, or a robot reading a bedtime story every night to a kid who is no longer there.

Yes, same happened to me. I hated F3 on release, could not bear it for more than an hour, but gave it another try last year after reading a suggestion that you have to run away from any danger at the beginning of the game. I played with a controller and in god mode cos I don't like and care about the combat. I ended up liking F3 more than New Vegas.

I have to disagree with the bolded part. Bethesda used to be masters of "environmental storytelling", meaning you discover some place and just by how things are arranged, the place itself tells stories of what might have happened here. You can only achieve this with lots of attention to detail. I said "used to" because I found Skyrim was a bit lacking in this department - even more detailed than the previous games, yes, but most places didn't have this distinct feeling "something has happened here".

I agree about the writing, Morrowind had outstanding writing, but you had to discover it for yourself when you tried to understand the thing about the Nerevarine and the political structure and the history of the Dunmer. After that it went downhill. Although Shivering Isles had quite a few glimpses of the former glory. Fallout 3's writing is really bland, and Skyrim is not much better.

As for quests, I think Bethesda always had a knack for entertaining side quests with nice twists (i.e. the painter in Oblivion). Main quests on the other hand... foreseeable, cheesy and overall not very creative.

About the bland story telling in F3. Yeah, that's what happens when creative people are replaced by technical people. I have this theory about how creative people are replaced by technical people, then the technical people become the next generation's creative people, then the process repeats itself... along with a sprinkle of diminishing returns. It's probably wrong, but until someone can do different math to show me otherwise, I'm sticking to it.

The great weakness of that environmental story telling is that at some point the wires and strings holding up the puppet become to apparent. We've all bumped into those impassible mountains or endless oceans that restrain the player. We meet interesting characters or go on quests, but once those achievement levels have been reached, there's nothing else to do. I know we've all gotten to that in point in open world RPG games where we've done all the quests, saved all the innocent folk, or gone on a kill-crazy rampage and left the entire world a broken mess littered with the corpses of hundreds of NPCs. Then all we can do is load up some mods or wait impatiently for the sequel.

Yay, Steam or Bethseada-works infected, needs to be modded to hell before its playable over priced trash on the horizon! Maybe in 5years when the modders have done their excellent work it may be worth it.

My GOTY edition works fine without any client or other DRM crap. Why buy a version with GFWL (or do you mean New Vegas?)

As for Fallout 3, I quite enjoyed it it. Didn't expect too much and some of the add-ons (looking at you spaceship) were utter garbage. Also, some of the ideas didn't work well, that whole pause combat and choose areas to hit rubbish, may look good when your using a controller but for M+K purists its plain cheating.
Would be nice to see (although never going to happen) Falltout 3 and NewVegas here so I can try the Tale Of Two Wastelands mod, unfortunately NewVegas is Steam infected.

I pretty much agree with those assesments. Morrowind was the last game with a really consistent story, while Oblivion, Skyrim and Fallout 3 being quite lacking in that department. Oblivion had one interesting DLC (Mehrune's Razor) and an expansion that was way better than the main game in terms of story and world, but Skyrim and Fo3 were just bland. Sure, they are fun to play, but you just don't care about anything in those.

Morrowind factions were quite nice made and you had to think really well if you wanted to become the leader of each bloody faction. You still could not become the leader of all the houses and i always favored Hlaalu for their way to play the politics game. Dammit, now i want to replay Morrowind:P

That is a good approach OP. The game has some amazing things to find that are not on the map specifically.

That's why I 'kinda disagree' : I am on the same page, but at a very different level :-)