To add some more information, since I got this seemingly interesting new game (which I now can't play for the most part) just yesterday:
Basic setup:
Game: Towns v8a (steam version, last updated today, ie. 2012-11-09)
OS: Windows 7 64bit, up-to-date on patches
Java: JRE 1.6.35 (not sure which architecture it was; probably 32bit), JRE 1.7.9 (32bit), JRE 1.7.9 (64bit)
ATI-GPU-Hardware: "AMD Radeon HD 6700 Series" according to display manager (PCI-ID: 1002:68BA ; hardware id string is: PCI\VEN_1002&DEV_68BA&SUBSYS_E144174B&REV_00 )
ATI-GPU-Drivers: used to be from around 2011 (amd.com) and is now at the most current version (2012-11-08). For the display driver this is 9.2.0.0 (dated on 2012-09-27)
There are several issues which have been tested on both ATI-driver versions and several Java version and all can be reproduced at will:
a) the ATI crash issue in window mode during a manual window-resize (retry a few times if it doesn't instantly happen; also blackens out the viewport completely)
# EXCEPTION_ACCESS_VIOLATION (0xc0000005) at pc=0x000000006171f8d5, pid=4800, tid=4720
#
# JRE version: 7.0_09-b05
# Java VM: Java HotSpot(TM) 64-Bit Server VM (23.5-b02 mixed mode windows-amd64 compressed oops)
# Problematic frame:
# C [atio6axx.dll+0xaff8d5] DrvPresentBuffers+0xabc535
b) the ATI crash issue when going to fullscreen (via options menu or F11): most of the times it only gets you a big black screen within the gameclient's viewport (yet the black-in-black elements seem to be somewhat accessible), but after some switching back and forth it crashes with the usual error message:
# EXCEPTION_ACCESS_VIOLATION (0xc0000005) at pc=0x635d9dea, pid=2028, tid=1832
#
# JRE version: 7.0_09-b05
# Java VM: Java HotSpot(TM) Client VM (23.5-b02 mixed mode, sharing windows-x86 )
# Problematic frame:
# C [atioglxx.dll+0x949dea] DrvPresentBuffers+0x90ce8a
c) the viewport's window size in windowmode doesn't adhere to the values provided by towns.ini / the gameclient in windowmode always creates a viewport that maxes out the full height of the display (which makes the lower scroll area unaccessible since Windows 7 has such a big desktop bar).
Add up issue a+b+c and you get a wonderful game that is not playable at all by any standards; the workaround with the least effort would probably be to use the window-size provided in towns.ini to give the user a means to workaround the issue this way. The ATI crashes themselves are exactly the same no matter what Java version is being used (which, as you so aptly said in this thread, is because it's something external to your java proggy.. still.. very bad IMO).
In any case, whatever this function call "DrvPresentBuffers" does, is not what's happening.. or is it the call itself that is failing? Something that might be of help.
And to add insult to injury, yet another thing, which is purely because I got the game via steam: I can't even play the game on my CentOS Linux-Client, since Steam for Linux is still in beta and I'm not part of it

Have a great day nevertheless. Maybe someday I can actually play this game

edit: On second thought, do you guys have Trac or some other kind of bug tracker? It would probably be prudent to create an actual bug report rather than letting me type this one up in the mishymashy way that it is.
edit 2: SOLVED!
To quote the other post:
Trying to roll back to the point where the bug shows up again, this showed up:
Under the heading "SMOOTHVISION HD:Anti-Aliasing" removing the check on "Use application settings" triggers the crash on window resizing or fullscreen.
In the catalyst control center / AMD VISION Engine Control Center in the section "Gaming" / "3D Application Settings", under the heading "SMOOTHVISION HD:Anti-Aliasing", make sure to have the box on "Use application settings" ticked, or the crash on window resizing or fullscreen could (and probably will) rear its ugly head.