I just acquired this problem and it led to something worse (I've been through the forums and didn't see anything like it)
I think I was at the same spot the op was by the description and I got the loading region failed notice and the crash.

I logged back in and now the client ran ok for a about 10 minutes but now runs for about 1 minute and then freezes. I tried running the updater and it does the same thing, runs for about 1 minute and then freezes.

Has anyone else seen this? Would it be smart to uninstall and reinstall the client from scratch just for... well, mostly for my own amusement, apparently I'm not going on any quests with less than 2 minutes to get from point a to point b.