I didn’t have to modify an XML either. Seems the crash is graphically related if it worked after Phenom disabled HD textures, and worked for me after I lowered my reso (I do not have HD textures installed).
Worth noting that Pestilence can be entirely skipped. Once you get Questions and Answers, simply go to Merhojed, steal the letter, and turn it in. Tested this last night and it works perfectly. Caveat is everyone Merhojed will be bugged (you can start Pestilence but cannot progress it, as no one will speak to you).