I've got myself a Millenium G200 with 16 Meg SGRAM too, on a PII 400Mhz, 128 Meg RAM, and
a SB AWE64 too.
I have the "solid block characters" problem (described on the Lucas Art site), although I run the 5.52 Matrox driver, but I don't have any other game crash nor music lock.
In addition, I run the game in 1152x864, 24 bits, without any big trouble, except some very few frame freeze from time to time when combat is intense (many people and explosions at the same time).
I run Windows 98 first edition, and DirectX 7.0a (the latest version, downloaded from the Microsoft site; I don't use the 7.0 from the game CD).
I'm not sure this helps (and I understand it's frustratring when you have a problem to hear people saying they don't), but I think it was interesting for you to know that someone, with almost the same configuration, can play the game.
The only difference is, I have the french version (yes, I'm french...), but I doubt this makes a big change. I installed the 1.1 patch too.
Are you sure your 5.41 is correctly installed ? It should be explicitely mentioned in the Information tab. Sometimes, the installation doesn't work properly, and you must run the pd_unin utility to correctly clean up your system.
What features of the PowerDesk do you run ?
I kept myself all default options, and didn't change anything.
Which Graphics BIOS do you run ? I have 2.60
Otherwise, my only advices are
1. check your swap space; I recommend Windows to manage it by itself. In a rough approximation, and from my experience, the game needs 128 Meg paging space.
2. try on a different resolution
3. if it doesn't work, install DirectX7.0a from the Microsoft download center
4. if it doesn't work, install the 5.52 driver, but use pd_unin first.