Nah. The create error concurs because of the wod models. They arent implemented completely, mostly some hair is missing and undead textures. But its these files that cause an error when creating a character and they can also cause crashes ingame. So either you might use the old textures by renaming/deleting "Mainfolder/Data/enUS/patch-enUS-w.mpq" and "mainfolder/data/patch-w.mpq or live with that you cant use every hairstyle and a few missing face features. I chose the latter, cant stand the old faces anymore.
As WoW only could adress 2gb of ram back in the days, you want to install Large Address Aware on the wow.exe, it enables usage of more ram. Its allowed and i havent had a crash with it. Also there is a patchfile from Cataclysm, which brings the updated water to Wotlk. Put it in the Data folder, i attached the file. Lordaeron is really nice, and really stable/bugfree, atleast not more than on retail. Have fun. :)
patch-4.mpq