TSE Car Demo crashes on startup

Myself and a few other users have had difficulty running the Milestone #1 TSE Car Demo. On my system, it crashes with the error
"The instruction at "0x004cb38e" referenced memory at "0x00000000". The memory could not be "read"."

and leaves the following log file

//-------------------------- 10/29/2004 -- 16:07:15 -----
Processor Init:
   AMD Athlon, ~1.80 Ghz
     (timed at roughly 1.83 Ghz)
   FPU detected
   MMX detected
   3DNow detected
   SSE detected
 
Math Init:
   Installing Standard C extensions
   Installing Assembly extensions
   Installing FPU extensions
   Installing MMX extensions
   Installing 3DNow extensions
   Installing SSE extensions
 
Initializing platform...
Input Init:
   keyboard0 input device created.
   mouse0 input device created.
   DirectInput enabled.

Creating GFXDevice...
Done
--------- Loading MODS ---------
Loading compiled script common/main.cs.
Missing file: common/defaults.cs!
Loading compiled script demo/main.cs.
demo/main.cs (0): Unable to find function loadDir
Loading compiled script demo/client/defaults.cs.
Loading compiled script demo/server/defaults.cs.
Loading compiled script demo/client/prefs.cs.
Loading compiled script demo/server/prefs.cs.

--------- Parsing Arguments ---------

--------- Initializing MOD: Common ---------
Loading compiled script common/client/canvas.cs.
Loading compiled script common/client/audio.cs.

--------- Initializing MOD: Torque Demo ---------
Loading compiled script demo/client/init.cs.
Loading compiled script demo/server/init.cs.
Loading compiled script demo/data/init.cs.
Loading compiled script demo/data/terrains/highplains/propertyMap.cs.
Loading compiled script demo/data/materialMap.cs.

--------- Initializing MOD: Torque Demo Server ---------
Loading compiled script common/server/audio.cs.
Loading compiled script common/server/server.cs.
Loading compiled script common/server/message.cs.
Loading compiled script common/server/commands.cs.
Loading compiled script common/server/missionInfo.cs.
Loading compiled script common/server/missionLoad.cs.
Loading compiled script common/server/missionDownload.cs.
Loading compiled script common/server/clientConnection.cs.
Loading compiled script common/server/kickban.cs.
Loading compiled script common/server/game.cs.
Loading compiled script demo/server/scripts/commands.cs.
Loading compiled script demo/server/scripts/centerPrint.cs.
Loading compiled script demo/server/scripts/game.cs.

--------- Initializing MOD: Torque Demo Client ---------
Loading compiled script demo/client/ui/customProfiles.cs.
Loading compiled script common/client/message.cs.
Loading compiled script common/client/mission.cs.
Loading compiled script common/client/missionDownload.cs.
Loading compiled script common/client/actionMap.cs.
Loading compiled script common/editor/editor.cs.
Loading compiled script common/client/scriptDoc.cs.

I find the line "demo/main.cs (0): Unable to find function loadDir" worrysome...

Athlon 2500+ @1.85 ghz
768MB Ram
Radeon 9800pro 128MB
Turtle Beach Santa Cruz Sound Card
Windows 2000