Crashing problem has now been tracked down. Given that it always freezes rather than giving a guru suggests it's actually the half hour demo timeout. It always takes the same amount of time.
I think the fact it won't recognise the keyfile is because it's the wrong one.
Go have a look
here if that keyfile is still not working for you. You can verify the keyfile is working by checking the Ambient > About MorphOS window, or running ShowConfig in a shell.