Yes! that fixed the problem, thank you very much for your help. Although I am pretty sure that I played the game on the "unsupported" resolution before without this problem.
I've done some more testing and it seems that the problem is with all normal 2h swords. I bought a new 2h sword from the vendor and it caused the game to crash when equipped. Other 2h weapons like spears and halberds are fine. I also loaded a pre-Beregost save that I had and the problem is still there. I don't have access to a +1/+2 2h swords to see if there are problems with them as well.
Ok baldur.err is still empty after every crash apart from the line to start logging. Baldur.log now logs some information but I don't think it says much except for area/position/character. Here is the content of Baldur.log:
The good news is that I managed to isolate the bug to Minscs 2h sword. When I de-equip it by selecting him and clicking on "fist" icon I can enter his inventory. If I try to equip the sword on him or other character the game crashes.
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