Offhand, if I remember correctly, an Error Type 1 is a Bus Error caused by an illegal instruction to the processor. As Toast has suggested, this could be caused by an insufficient RAM allocation for your machine, however since people have had RAM problems before and have not yet (to my knowledge) had system errors, I'd say that you have most likely either a) missed something in your game which is causing the failure or have a nasty extensions conflict.
Now, when you open your executable application, it opens, brings up the load bar and crashes, yes? Does the actual load bar appear and say 'loading' or whatever, is it the same one as was included with the template, and have you selected it properly in the 'Game Interface' options?
If those are correct, have you created a proper StartGame.cet event (case sensitive, exact spelling) with an event of type Teleport to your StartupScreen location (or whatever it is called) ? Since it seems to be hanging right at that point, it sounds like that could be the problem.
Lastly, are you using Coldstone 1.0.1 or 1.0.0, and are you using the Carbon executable or the Classic executable?
Anyway, if it's none of those things, can you post the following:
Processor type/speed
System software
Version of Coldstone Installed
Version of CarbonLib Installed
Physical RAM Installed
Virtual Memory Allocated
Hard Drive Space Free
I'll try to get back to you. Good luck!
-Andiyar
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"Any good that I may do here, let me do now, for I may not pass this way again"