The OP is saying that this is a diamond DVD version not the GOG, so GOG specific advice is probably not that useful, no? :)

Blue screens of Death have sometimes been caused by sound drivers, not video drivers, even tho it really reeally looks like a video problem. Especially likely if you have realtek sound. It's something to try at least sooooo...

Ingame turn off EAX and Enable hardware sound and choose Miles (or RAD may work) and experiment with different drivers.

(You can also jump to different chapters so you can miss out the peninsula district if you want. I think #31 on this thread should have details of codea to enter to get henchie items to continue their quests. You will also have to edit your nwplayer.ini. Under [Game options] add or change so it has the line "CODEWORD XP2=barkeater" (no quotes)
This should let you go to any chapter in any of the main 3 campaigns).

have fun :)

It's not a GOG issue, my pc-dvd of NWN Diamond required that I download the CR patch when I tried to install the 1.69 patch as well.

It's an issue with Windows and NWN compatibility, and happens often enough that the same webpage you DL 1.69 from has the CR patch.