Fallout 3 Crash After Character Creation

The ini file in the Fallout directory itself is just for the default settings. It will have no impact on the in game settings you set.
Merging the documents w/the Installation directory will not help, No.
Im really not sure what to recommend here. Ive never really had such issues with textures.
At this point, I would completely uninstal FO3, and delete any file left over.
Re-Install so that you have a fresh copy of the game.
I would delete the Fallout ini and Fallout Pref. ini located in the Documents/My games Folder. (Actually I would delete these before uninstalling the game)
Start the normal launcher itself, and set it to Med. Quality, and then set the resolution (For now-You can bump up the settings once you get the game stable)
Boot the game in its vanilla state, and close it once you get to the main menu.
-->>By doing this, you will recreate the settings at default values in the Documents/My Games Folder<<--
You can go ahead and active GFWL now if you want. Lots of people disable it, I have myself in the past. But, as of late I just leave it enable. Ive had no issues with it and I run a lot of mods. With the exception of any mod that requires FOSE. But, FOSE will disable it anyway. I've found disabling is not at all needed, even if you want to run FOSE.
Then open Fomm, start activating mods 1 at a time, and run BOSS after each mod.
After you activate 1 mod, and sort it, boot the game (with Fomm) and ensure you get to the main menu. (No need to start a game, just make sure it will launch)
If by chance all is going well, and the game starts crashing after a mod gets installed, you'll know its a likely culprit. Disbale it, and try again to verify.
Keep going like this until you get all your mods installed.
Then, run AII (from the DATA directory) and activate it. It should all work now.
Dont forget to make a Merge Patch with FO3 edit after all this is done, and put it at the very end of your load order.
This is the procedure I do, and never had any major issues, aside from a buggy mod here and there.. Not really sure what may be causing the issue for you TBH.

I have to say, the game is great. Its been an adventure trying to make it playable. Except for in the latest spot, I've been able to fix or work around the issues. Here's what I'm experiencing:
Maybe these all have something in common:
1. Rescuing Riliy's rangers, as we kill the last Super Mutant, one of the NPCs start to say something and then the game locks/crashes. I ran out the front door during the fight and then the quest objective didn't get completed, so that was left unfinshed, but I was able to continue the game.
2. When talking with Roy Phillips about his entry to Tenpenny Tower, the quest gets activated and then the game locks up as the green quest text appears on the screen. Just don't talk to Roy, no lockup/crash to worry about, game continues.
3. Listening to the emergency radio broadcast from Vault 101, at the end as the quest gets activated, lockup/crash. Don't listen, game continues.
4. As I am leaving Raven Rock, I see Fawkes doing his thing. But as soon as I hit that top step, the game locks up and then crashes to desktop. I can wait for him to come to me, and he can leave, but every time I hit that step, crash/lockup. This one I can't work around. I've tried fast travelling, same thing.
I'm guessing it has something to do with the questing script, but don't know enough about program to offer anything more than a guess.
Here's what I've tried so far:
No DLC or mods at all
Installed/Reinstalled in both XP and Win7 RC. Same thing, reproducible in both OS.
Drivers updated
Patched to 1.7
Tested without any patches after reinstall
Multi thread ini fix
FFShow ins't installed, so I did install it to add FO3 to the expection list
Disable audio device
.net framework update
Keyboard and device keys to default
Returned all overclocks to stock speeds.
Completing Raven Rock quest at command prompt
G4WL never runs
Removed the saved games and started fresh - This presented the issue that the game now crashes just after the character creation when the mother starts to bite it in the OR. I really don't want to use a very early saved game to try getting back to the same spots only for the same thing to happen.
As you can see, I've tried every fix I've been able to find on the net. Support from the bethesda website is useless too. I'm hoping someone has knowledge of the backside of the program and can identify a path towards a fix. Otherwise, I might just have to walk away from this great game and never give bethesda another dollar of my hard earned money. Yep, I'm on the far edge of frustration with this.