I've read this on a few forums, it's an odd one. I have a 1260 myself and it runs fine here without disabling caches. I'd like to get this fixed as a priority but I need to know all the details:
1. are there any error messages/ guru error numbers?
2. at what point does the crash happen, before the splash screen, after the title screen etc..?
3. are you running from floppy, workbench icon or command line? (if workbench, try command line. You have to CD to its own directory so it can find its datafile)
4. do you have any other software running in the background? Try deactivating everything else, or boot with no startup sequence and type "loadwb" to run it with the most basic setup possible...