You have to play the game in 1024x768 resolution or it crashes constantly.

Set the game to run as admin, and in Windows 7 compatibility.

Then follow the instructions in the original post to unlock the beta with the password. you do not need to turn off overclocking I had it on and it was fine.

this next part is really important so

Modify the pref.cs in Documents/My Games/Dead State using Notepad.

Change the $pref::Video::mode line to
$pref::Video::mode = "1024 768 true 32 60 0";

Note in the picture the file highlighted should read 'pref.cs' but after opening it with Notepad it changed to 'pref'

don't change the resolution once you have started the game or it will start crashing

enjoy! and remember to save your game regularly just in case.