Yes. Stability problems in old trueSpace up to 6.6 are legend. That's why the advice was save often, and don't forget to save often. And because of exactly these kind of problems the guys started to develop the new core, trueSpace 7. Devs stated more than once that the old code busted at the seams. Means they knew about the stability problems very well, but couldn't really fix them. Or better said the fix is the new tS 7 core ...

Regarding Puppetteer. It IS a third party tool. Even when it came with gameSpace. Means you really would've had to talk to the pupetter makers, not Caligari. It's like moaning towards 3D Gamestudio when IceX makes trouble (no offence, just an example ) ...