Ok, I found this - 
  I found another way of getting around this problem from another indy forum
 (
http://forums.infernalmachine.net/html/forum2/HTMLL/000243.html). There is a SAVE
 GAME ERROR somewhere in the ice sanctuary. You'll need to start from a game saved
 BEFORE you give the plant to the old lady -hope you've got one not too far back. Save
 the game, give her the plant, go into sanctuary and DO NOT SAVE or even QUICKSAVE
 your game until after you kill the ice guardian. We gave in and used god mode feeling
 that after 50 crashes we deserved it!! The screen will flicker when he dies but will not
 crash. PHEW!! Save the game only after you leave the sanctuary to be on the safe
 side. 
 Good luck with the rest of the game!
 dave and barb  
 Hope this works.