I just tried to reproduce the crash on a laptop running Windows 7 with Gamestudio A8.03.2 and the demo didn't crashed.
Maybe someone else can test it too and report if its works or not? This looks a little bit like a Gamestudio related problem and I can't see any reason in my code that could produce the bug.
Your file-write command seems to use some kind of encryption or am I'm wrong?
I guess you mean the files produced by LFDataRef objects? If so, no, they aren't encrypted, but the LFDataRef object is meant to store binary data and thus also saves binary data.
If you add a CString to an LFDataRef object and then write it to a file, you will see that it stores the data unencrypted (btw, the LFDataRef and LFStringRef objects are toll-free bridged in the next version)