I'm by no means an expert, but there's a coupla things you could try:
1) Set to Software Acceleration/320x240 for the section... if it gets you through, revert back to Hardware Acceleration
2) Back up the saves folder, uninstall & reinstall the game, and copy the saves folder back in. I haven't heard of this crash anywhere else in fairly extensive searching (for solutions to my own problems), so it could be a corrupt file
I'm also running XP & GeForce 5600 and I didn't have a problem with Yuffie pickup... Chocobo & Cosmo, yes, but not Yuffie. So if you still have a problem after trying those options (and anything else anyone suggests), I'll play it through for you. Just drop a link to the savefile, or email it to me.
If you're using nVidia drivers it's recommended that you head backwards to Detonator drivers (nVidia 4.xx.xx, rather than 5.xx.xx or 6.xx.xx) - apparently the newer ones have compatibility issues with FFVII PC. Have a look at some of the posts on the
2nd page of the Great FF7 FAQ topic. You may also want to try the TNT rather than Riva setting, which works for me. Loads of drivers are available
here