I'm at a loss to know what is at play.
The ini file is quite seriously incomplete.
There could be memory (or other) problems with your computer. Based on your reported RAM, I'd guess your computer is fairly old. As L'Arc mentioned, there could be a RAM issue, and it certainly would be a good idea to test it.
It would also be a good idea to scan the disk. (Go to My Computer in the start menu, right click the volume the OS is on, select properties, then Tools, then "check this volume for errors."
I'm going to look at editing your ini file for you, I have no idea if it will work, it will take me a day to find time to do it.
In the meantime, can you try to change a value - any value- in the file (Remember which one, so you can undo it later) and save it, see if you are able to do that.
If you can't, there is no point in my comming up with a modified one for you, which might not even work anyway. (It's guesswork troubleshooting, and I've not tried it before, but if you're willing to be a test case, it has a small chance of working - provided the hardware is OK.)
Let me know.