max2,
The error is due to frame rates. Your players cpu crashes when trying to render full screen video at the High frame rate setting, it just isn't powerful enough. The problem being you can not adjust frame rate at 160x120 in version 4.0 as the settings are default.
If you edit the AmvTransform.ini in the AMV Conversion Tool folder (4.00) and edit CHIPTYPE=1 to CHIPTYPE=0 you will be able to get it to convert 128x128 and adjust the settings.

However if your screen is 1.8 and you want full screen 160x120 you will have to use Version 3.57 as it is the only version that you can adjust the frame rate at this resolution.

I have posted how I did this here http://www.mympxplayer.com/viewtopic.php?t=449