I've got the same problem. I used the Patch to get past the chocobo races, but with the cosmo canyon scene, it just locks.
I've got the movies on my hdd, I've tried all 3 different software rendering, I've tried lowering the hardware acceleration, updated video drivers (although I don't believe it that since it happens after the movie), tried reinstalling codecs for multimedia.
When it crashes, it crashes right after the movie when it switches back to the regular game play. It doesn't happen during the cgi scene. I'm beginning to wonder if it's another WinXP/Win2k issue involving the game. I've gone back to the unpatched version and again the same thing.
[edit] I finially got tired of trying to figure it out so I used a character editor from ficedula website to put them into the debug room. After that, I was able to get to the scene with Red's father.
Also, there seems to be the exact same problem with the date scene in the gold saucer. Didn't matter who you dated.