Game crashes completely after worl-loading

From the launcher, I start the game, and the game menu appears.

I click on create, or load (even older worlds I worked on in version 1.6)

The world starts loading.

The moment I get the first in game glimmer (The toolbar and my hand is visible) The game crashes.

It only crashes during active play, I can still have the pause screen if I click outside the window before it finishes loading.

Older versions 1.5 & 1.6 worked splendidly
I have updated my computer to run the latest Java, with no affect.
Problem has been consistent over versions 1.7.1, 1.7.2, 1.7.3 & 1.7.4
I have to force-quit the Java platform to make it go away.

Attached picture of the moment it jams.