crashes, crashes, can't run game

Post your debug.err information.

It's possible your upgrade got corrupted. Did you upgrade to 1.2 through Stardock Central? Are you trying to load save games from earlier versions?

As Moosetek says, your debug.err information would be extremely useful.

here's my debug.err info"

Debug Message: Version v1.2 last updated on: Mon Jun 12 18:04:26 2006
Debug Message: *********DXDiag info follows.*********
System Info
Time: 7/8/2006, 23:10:49
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: HAL9000
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: Dell Inc.
System Model: Dimension XPS Gen 3
BIOS: Phoenix ROM BIOS PLUS Version 1.10 A01
Processor: Intel(R) Pentium(R) 4 CPU 3.40GHz (2 CPUs)
Physical Memory: 3070MB RAM
Page File: 408MB used, 4550MB available
Windows Dir: C:\WINDOWS


Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: RADEON X800 XT
Manufacturer: ATI Technologies Inc.
Chip Type: RADEON X800 XT (0x5D57)
DAC Type: Internal DAC(400MHz)
Key Device: Enum\PCI\VEN_1002&DEV_5D57&SUBSYS_03021002&REV_00
Display Memory: 256.0 MB
Current Display Mode: 1024 x 768 (32 bit) (75Hz)
Monitor Name: Plug and Play Monitor
Monitor Max Resolution: 1600,1200
Driver Name: ati2dvag.dll
Driver Version: 6.14.0010.6606
Driver Date: 3/21/2006 23:56:42
DirectX Acceleration Enabled: Yes



Sound info
Sound device 1:
Description: SB Audigy 2 Audio [CCC0]
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1102&DEV_0004&SUBSYS_10031102&REV_04
Manufacturer ID: 1
Product ID: 100
Driver Name: ctaud2k.sys
Provider: Creative
Driver Version: 5.12.0001.1164
Driver Date: 12/8/2005 11:55:46
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0



Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Going Fullscreen
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_6_SAMPLES
Debug Message: Game Resolution: 1024 x 768
Debug Message: Running fullscreen.
Debug Message: HAL (hw vp): RADEON X800 XT
Debug Message: D3DPRESENT_INTERVAL_DEFAULT
Debug Message: Refresh rate: 75
Debug Message: Bit Depth: 32 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: A full-color cursor is supported in hardware at high resolution modes.
Debug Message: RGB in format 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 ca26f230
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: * Collectors Edition *
Debug Message: Set mouse.
Debug Message: Set update timer.
Debug Message: Clear data definitions.
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for PirateShip. ***
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for Starbase. ***
Debug Message: Reading Star Names
Debug Message: Reading Star Names... Done

Nothing stands out in the debug.
I would tend to agree with Mavx21, you may have a corrupt download.

Try downloading the file to your hard drive and install it from there, instead of through Stardock Central.