Hello
I have experienced the same failure. Turning off the "Vertex Buffer Object" option in Pssetup seems to help. In my case the setup crashed also. So I had to open the psclient.cfg file and edit the following line to turn off the option:
Video.OpenGL.UseExtension.GL_ARB_vertex_buffer_object = true
Just write false instead of true.
Well, the client works, for now, but Pssetup worked one or two times, and then kept on crashing.