I'm assuming that you are using either Windows 7 or Vista. I'm still playing Cradle on my 10 year old computer using XP. The version of the Source code that I am using is almost a year old, and I have not upgraded mainly because that version has not caused me any problems. One crash in the past year, and I simply reloaded the autosave and had no further problems.
I'm also not sure about the Gog version, because I'm still using the original disk (actually the backup that I made, since I did not want to risk ruining the original).
My first thought is to try a separate clean install WITHOUT the Source Code
(CTP2, Patch, Modswapper, Cradle) and see if that can get you launched. If not, then the issue has to do with Windows 7. There have been reports of issues with the OS in relation to older games. If you can get the game to launch, then there is a conflict with the newer version of the Source Code. (and there have been some reported issues between the two)
There is a thread here at apolyton.net in the CTP2 forums talking about the Gog download as well as movie problems and newer OS vs XP issues.
Worst case scenario is that I may have the version of the Source Code available that I am using on my setup, and I can use transferbigfiles to get it to you.
Or go into the CRA...wondermovies.txt file and change all the ''moviename.AVI'' entries to ''NULL'', which should deactivate all the movies. They are only eyecandy anyhow.
You can also turn off the movies ingame and see if this stops the crashes.
Hope this helps