Game crashes on ATI 3870 not far from the start ( patch 1.03 is applied)

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The game crashes (BlackBox appears) when shader quality is set to Medium or High once I get to the very first labyrinth (instant crash after loading, or after continue), I mean the place where dogs are encountered for the first time, it works fine before that with all settings on High. My specs are as follows: C2D 2.4, 2Gb RAM, WinXP SP2, Catalyst 8.5. And without 1.03 patch the graphics are obviously corrupted.

Exception Reason: Penumbra.exe caused an EXCEPTION_ACCESS_VIOLATION in module Penumbra.exe at 001B:004F1C25

Black Plague worked fine from start to finish on this comp with 1.01 patch.

Please help.


PS: Tried it with Cat 8.3 and 8.7. The same thing.