I am having the EXACT same problem with the demo.
However there the similarity ends.I'm running a Rev B iMac with a mere 32MB of ram(64MB virtual).Thought this may have been the problem(the RAM that is) but as fepp has 192MB it would appear not.ATI Rage Pro with 6MB and the only thing in common with fepp is OS 8.6.Have reduced sceen size,trashed prefs,reduced to basic set of extensions(with 32MB you can't run much anyway) but to no avail.
If I hit esc from where it hangs at "the loading 3D graphics" I go to the desktop.Select CM demo from the finder and a white screen appears.I cannot quit or shutdown from the demo(although I can return to the desktop),I have to reset via paper clip.
Had run the earlier demo without the slightest hint of a problem and thoroughly enjoyed it.Thought I'd just check the gold demo prior to purchasing but have been unable to get it to run.Anyway I'm sure it can be sorted,will keep trying.
Chek.