[WDWTigger72]

Well, Figured out the problem and posting this information for others that may run into this. I have two anti-virus programs (1) Symantec Anti-Virus - Performs real time scans (2) Computer Associates Anti-Spyware - Performs real time scans. I disabled both and the game started working successfully. When I re-enabled one of the applications the game crashed, and vice versa occurred when I re-enabled the other application. The following steps will help you exclude the "Pirates Of The Carribean Online" games files from being real-time scanned:

Symantec Anti-Virus Version 10 (Windows XP Users)
(1) Click on Start|All Programs|Symantec Client Security|Symantec Anti-Virus
(2) Expand the Configure|File System Auto Protect
(3) Select the Exclude Selected Files and Folders checkbox
(4) Click the Exclusions button
(5) Click on Files/Folders button
(6) Expand the C:\Program Files\Disney\Disney Online\Pirates Online folder
(7) Select the Pirates Online checkbox
(8) Click on Ok button (Three Times)
(9) Click on Exit button

Computer Associates Anti-Spyware
(1) Click on Start|All Programs|CA|CA Internet Security Suite|CA Anti-Spyware|CAAnti-Spyware
(2) Click on Options
(3) Select the Modify link (Across From Real-Time Scanner)
(4) Click on Browse button
(5) Expand the C:\Program Files\Disney\Disney Online\Pirates Online folder
(6) Click on Ok button
(7) Click on Close button
(8) Click on Apply button
(9) Close the CA Anti-Spyware window

Hope this helps some users down the line, I also noticed the game uses port number 7667, not sure if all games use this port but not sure if that is causing some crashes for others if its blocked through their firewall.