I'm not able to play Jedi Knight Dark forces II either. I get a similar message:
"JK.exe has encountered a problem and must close"
Funny thing is, if I don't enable 3D Acceleration (duh!), it runs OK in gorgeous 8-bit colors. But on 16bit colors it gives me that message as soon as the first level finishes loading.
I've read through most posts here and tried it all. Maybe it would be better to know what the gamers who have no issues are doing with it.
Windows XP Professional SP2
Core2 Duo E6400
EVGA Geforce 8800 GTS 640MB