Fresh install of both vanilla and Kingdoms with path 1.3. Unpacked successfully and deleted 2 files. Crashes a minute or two into any battle in both games. I am running Vista 64, 8800GT with 169.12 driver, 4 GB Ram.
Here are only parts of my log because it's long and I seem to be missing a lot of stuff:

23:02:27.851 [system.rpt] [always] CPU: SSE2
23:02:27.851 [system.rpt] [always] ==== system log start, build date: Jun 25 2007 version bld-medieval2-update2.1-30 (43169) ===
23:02:27.867 [system.io] [always] mounted pack packs/data_0.pack
23:02:27.898 [system.io] [always] mounted pack packs/data_1.pack
23:02:27.913 [system.io] [always] mounted pack packs/data_2.pack
23:02:27.929 [system.io] [always] mounted pack packs/data_3.pack
23:02:27.929 [system.io] [always] mounted pack packs/data_4.pack
23:02:27.929 [system.io] [always] mounted pack packs/localized.pack
23:02:30.659 [data.missing] [warning] missing/invalid cursor for ANISELECT
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_SABOTAGE
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_TRADE
23:02:30.659 [data.missing] [warning] missing/invalid cursor for DRAGGABLE
23:02:30.659 [data.missing] [warning] missing/invalid cursor for DRAGGING
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_MULTIPLE_SELECT
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_ATTACK
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_CHARACTER
23:02:30.659 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_RESOURCE
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_FORT
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_MOVE_OBJECT
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_WATCHTOWER
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_DEPLOYMENT_AREA
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_TILE
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_SPECIAL_PIECE
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PAINT
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_ADJUST_HEIGHTS
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_ADD_UNIT
23:02:30.675 [data.missing] [warning] missing/invalid cursor for MODIFIER_PLACE_SETTLEMENT
23:02:33.051 [data.missing] [warning] Cannot find the portrait path: data/ui/mesoamerican/portraits/portraits/young/civilians/000.tga, using the default culture path if it exists
...
23:02:33.070 [data.missing] [warning] Cannot find the portrait path: data/ui/eastern_european/portraits/portraits/young/civilians/000.tga, using the default culture path if it exists
...
23:02:33.091 [data.missing] [warning] Cannot find the portrait path: data/ui/middle_eastern/portraits/portraits/young/princesses/000.tga, using the default culture path if it exists
...
23:02:33.113 [script.err] [warning] Trigger parsing warning in data/export_descr_character_traits.txt, at line 10671, column 23 :
we should only have trait(Berserker) additional affects for triggers(Battle_Losing_Berserker)
...
23:02:33.133 [data.missing] [warning] Failed to find ancillary image data/ui/ancillaries/scribe_ancillary.tga
23:02:33.133 [data.missing] [warning] Failed to find ancillary image data/ui/ancillaries/security_religious.tga
23:02:33.133 [data.missing] [warning] Failed to find ancillary image data/ui/ancillaries/security_religious.tga
23:02:43.512 [system.io] [warning] open: data/loading_screen/loading_bar.tga.dds is missing
..
23.:02:45.458 [system.io] [warning] open: data/menu/symbols/FE_symbols_80/normans.tga is missing
23:02:45.459 [system.io] [warning] open: data/menu/symbols/FE_faction_units/normans.tga is missing
...
23:02:45.465 [system.io] [warning] open: data/menu/_M2_MP_HISTORICAL_BATTLE_CHOOSE_TEAMS.TGA is missing
23:03:55.616 [data.missing] [warning] Cannot find the portrait path: data/ui/eastern_european/portraits/portraits/young/rogues/000.tga, using the default culture path if it exists
...
23:03:59.680 [system.io] [warning] open: data/loading_screen/loading_bar.tga.dds is missing
...
23:04:03.318 [system.io] [warning] open: models_strat/northern_ambassador.rum is missing
...
23:08:41.875 [data.missing] [warning] Cannot find the portrait path: data/ui/eastern_european/portraits/portraits/young/rogues/000.tga, using the default culture path if it exists
...
23:11:12.523 [system.io] [warning] open: data/world/maps/campaign/imperial_campaign/radar_map_background.tga is missing
23:11:47.445 [system.io] [warning] open: data/loading_screen/loading_bar.tga.dds is missing
23:11:47.446 [system.io] [warning] open: data/loading_screen/loading_logo.tga.dds is missing
23:11:49.631 [system.io] [warning] open: data/models_effects/building_fire_glow.cas is missing
23:11:49.638 [system.io] [warning] open: data/models_engine/heavy_onager_torches.cas is missing
23:11:50.221 [system.io] [warning] open: data/loading_screen/loading_bar.tga.dds is missing
23:11:56.995 [system.io] [warning] open: data/descr_oil_effect.txt is missing
23:11:56.995 [system.io] [warning] open: data/descr_fire_texture_list.txt is missing
23:11:57.678 [system.io] [warning] open: data/textures/#al_outline.tga.dds is missing
23:12:00.369 [system.io] [warning] open: data/textures/#green_circle.tga.dds is missing
23:12:00.373 [system.io] [warning] open: data/textures/#arrow.tga.dds is missing
23:12:00.392 [system.io] [warning] open: data/textures/#arrow_distance.tga.dds is missing
23:12:00.397 [system.io] [warning] open: data/textures/#outline.tga.dds is missing
23:12:00.438 [system.io] [warning] open: data/textures/#unit_indicator_arrow.tga.dds is missing
23:12:00.444 [system.io] [warning] open: data/battlefield/cloud_sprite.tga.dds is missing
23:12:00.631 [system.io] [warning] open: data/models/textures/weapon_phalanx_spear.tga.dds is missing
23:12:00.806 [system.io] [warning] open: data/models/textures/arrow_red.tga.dds is missing
23:12:00.810 [system.io] [warning] open: data/models/textures/vertex_pointer.tga.dds is missing
23:12:00.816 [system.io] [warning] open: data/models/textures/waypoint_marker.tga.dds is missing
23:12:00.817 [system.io] [warning] open: data/textures/battlefield_border.tga.dds is missing
23:12:00.831 [system.io] [warning] open: data/textures/deployment_area_border.tga.dds is missing
23:12:00.840 [system.io] [warning] open: data/textures/#splash_ring.tga.dds is missing
23:12:00.851 [system.io] [warning] open: data/textures/#water_drop.tga.dds is missing
23:12:00.853 [system.io] [warning] open: data/textures/#weather.tga.dds is missing
23:17:06.108 [system.rpt] [error] Medieval 2: Total War encountered an unspecified error and will now exit.
what's really weird is that I actually have the last set of files only without the dds extension. And even stranger is that there is like 5 minutes between all those errors and the time my game crashes.
If anybody has any suggestions I'd really appreciate it. I have reinstalled 3 times today and same thing happens.