My problem is similar although doesn't usually occur at startup. I find that when I try to start UFT 3.0 my computer just locks up. There will usually be very faint red hashmarks at the top of the screen.
Absolutely nothing from the keyboard (alt-cntl-delete) or mouse works. I have to use the computer's restart or power down buttons on the computer.
The computer is fairly new, a 450Mhz Pentium III with 128 MB ram, etc. Will this patch that I see mentioned be of help?