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Nothing to be credited here, except the instructions that come with the WIN2K Files. I set the colours to red, and its red at my place.
Step 6-7 are what you should do first.
Everybody tells you to download the xliveredist and install. What nobody says is that the xlive.dll the game is asking for is not the one in your system 32 folders... its checking the one in the game's folder.
I discovered this by pure luck in an act of frustration.
Installing xliveredist does not update the one in your Fallout Folder. That's y I believe the Xlive.dll works... try it first by backing up a copy. It won't affect anything.
btw I've played for one hour or so without any crashes. I've downloaded the DLC the Pitt and got the signal 1 min into the game. VATS works perfectly without any lag. No random crashes either. Anyway I was not getting any random crash before. Also, I updated from 1.0.12 to 1.4.6 directly.