Nope, it needs AGA. There were some little hacks that enabled soft-booting into a CD32 disk on an A1200. UAE does include a 'CD32 Mode' thats supposed to automatically kick in when you choose that rom (included in Amiga Forever) - it includes emulation of the 1Kb flash that was used to save games (bit different to these 16Mb memory cards for XBox!).
Not sure about that crashing, tried configuring it by hand? (don't have any CD32 games or the right rom, so can't give any helpful advise :-P).
