Couldn't start the game, Had to use compatibility mode with windows 2000, but now I just get random crashes (already tried -dx9)

Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.090804-1412)
Processor: Intel(R) Core(TM)2 Duo CPU E4600 @ 2.40GHz (2 CPUs)
Memory: 2048MB RAM

Card name: NVIDIA GeForce 7800 GT
Display Memory: 256.0 MB
Driver Date/Size: 1/22/2010 04:50:59, 6359168 bytes

Description: Realtek HD Audio output
Date and Size: 5/7/2008 06:21:40, 4739072 bytes

Event error message:
Faulting application bioshock2.exe, version 1.0.0.1, faulting module bioshock2.exe, version 1.0.0.1, fault address 0x003e9d5f.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

0000: 41 70 70 6c 69 63 61 74 Applicat
0008: 69 6f 6e 20 46 61 69 6c ion Fail
0010: 75 72 65 20 20 62 69 6f ure bio
0018: 73 68 6f 63 6b 32 2e 65 shock2.e
0020: 78 65 20 31 2e 30 2e 30 xe 1.0.0
0028: 2e 31 20 69 6e 20 62 69 .1 in bi
0030: 6f 73 68 6f 63 6b 32 2e oshock2.
0038: 65 78 65 20 31 2e 30 2e exe 1.0.
0040: 30 2e 31 20 61 74 20 6f 0.1 at o
0048: 66 66 73 65 74 20 30 30 ffset 00
0050: 33 65 39 64 35 66 0d 0a 3e9d5f..


Pastebin of Watson's debugger log:
http://pastebin.org/89594