Demo crashes upon starting *PARTLY SOLVED*

[tek01]

Downloaded the demo from steam, It opens up, gives me the messages about gameplay and i adjust gamma than bang crashes.

PC specs are
asus p6t, i7 930, 5870 (catalyst 10.8 drivers), 6gb ram
Running windows 7 64bit ultimate

Little app popus up saying GAME CRASHED READ THIS!!

Amnesia.exe caused an EXCEPTION_ACCESS_VIOLATION in modulate amnesia.exe at 0023:004E6320

with the stack trace following

This is hpl.log (seems as there is no error msg?)

-------- THE HPL ENGINE LOG ------------
Engine build ID 20100818114615

Creating Engine Modules
--------------------------------------------------------
Creating graphics module
Creating system module
Creating resource module
Creating input module
Creating sound module
Creating physics module
Creating ai module
Creating gui module
Creating generate module
Creating haptic module
Creating scene module
--------------------------------------------------------

Initializing Resources Module
--------------------------------------------------------
Creating loader handlers
Creating resource managers
Adding loaders to handlers
--------------------------------------------------------

Initializing Graphics Module
--------------------------------------------------------
Setting video mode: 1024 x 768 - 32 bpp
Init Glew...OK
Setting up OpenGL
Vendor: ATI Technologies Inc.
Renderer: ATI Radeon HD 5800 Series
Version: 4.0.10061 Compatibility Profile Context
Max texture image units: 16
Max texture coord units: 16
Max user clip planes: 8
Two sided stencil: 1
Vertex Buffer Object: 1
Anisotropic filtering: 1
Max Anisotropic degree: 16
Multisampling: 1
Texture compression: 1
Texture compression S3TC: 1
Auto generate MipMaps: 1
Render to texture: 1
Max draw buffers: 8
Max color render targets: 8
Packed depth-stencil: 1
Texture float: 1
GLSL Version: 4.00
ShaderModel 2: 1
ShaderModel 3: 1
ShaderModel 4: 1
OGL ATIFragmentShader: 1
Adding engine materials
Initializing DevIL
Vendor String: Abysmal Software
Version String: Developer's Image Library (DevIL) 1.6.8pre Aug 12 2006
Version Number: 168
Adding engine post effects
--------------------------------------------------------

Initializing Sound Module
--------------------------------------------------------
Initializing OpenAL
Available OpenAL devices:
0. Generic Software on Speakers (Creative SB X-Fi)
1. Generic Software on ATI HDMI Output (ATI High Definition Audio Device)
2. Generic Software on SPDIF Out (Creative SB X-Fi)
3. Generic Software on Digital Audio (S/PDIF) (High Definition Audio Device)
4. SB X-Fi Audio [EC00](OpenAL default)
Trying to open device 'Generic Software on Speakers (Creative SB X-Fi)'... Success!
Number of mono sources: 32
Streaming setup: 4 Buffers x 262144 bytes each
--------------------------------------------------------

Initializing Game Module
--------------------------------------------------------
Adding engine updates
Initializing script functions
--------------------------------------------------------

User Initialization
--------------------------------------------------------
- DEMO VERSION -
--------------------------------------------------------

Game Running
--------------------------------------------------------


Any help appreciated