Tell tale sign of a CTD being memory related is when it cites kernel.dll as the cause of the crash. Trust me, I had my own nightmare run in with this with the interiors mod and later, the MFM. You may want to try the MFM interim which omits the neutral vessels, thus lowering the memory needs somewhat, but as far as previous discussions go, even this may cause issues without the 4GB patch and in the case of 32 bit systems, the 3GB switch may be required also.
Your best bet, and I know this may be slightly (more likely majorly) daunting, is to read the whole MFM thread from the start. I only say this as I know for a fact that the exact issue you describe has come up multiple times in that thread, including my own experiences and how I managed to get MFM working with my 32 bit XP install. FMInteriors thread also has the same discussions contained within which may be of help. It's a pain but at least the answers are there, somewhere. Thankfully, I'm on W7 Ultimate x64 now, which seems to embrace everything I throw at it.
Good luck.
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The owl and the pussycat went to sea in a beautiful pea-green boat.
It only took one T1 eel to convince that boat not to float.
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