The classic movie crash...

If anything try the steps mentioned here:
www.swat3lastresort.info/index.php/swat-2-startup-crash-fix

After you make the permission change please reboot and then try Swat 3 with one of the replacment movies.  Not the original.

If that doesn't work your can revert back to your previous permissions.   No harm.

I done that, but unfortunately Swat 3 still crashes on any movies with the original movie files AND with the divx files.
One thing to note, is that even with the permission for dplayx.dll updated, even swat 2 is not able to play its movies.

You need to install the XVID replacement movies for Swat 2 for it to work.

Sorry, I should have included the movie link in the tutorial, lol.

www.moddb.com/games/police-quest-swat-2/...ds/swat2-xvid-movies
 

*ARRRRRRRRG*
Im getting crazy the divx replacements movies for SWAT 2 dosent work either.

Okay, i think at least we can see that there is a common problem between Swat 2 and Swat3...
I dont really care for Swat2 honestly, but it may provide some indications at least...

Just to clarify they are XVID not DIVX. Two different codecs.

Still working on a tutorial to check Windows logs...

- Replace the original Swat 3 movies with the XVID replacement movies.

- Run the game so that you get the infamous Direct X error with the replacement movies.  Note the time.

- Use the tutorial below to look for the reason of the crash.  The errors are logged by time they occur.

www.swat3lastresort.info/index.php/event-log-tutorial

Please note:

The error that the original movies give should be different than the XVID movie error.

Original movie error:

The file  could not be processed by the application "I:\Steam Games\steamapps\common\SWAT 3 Tactical Game of the Year Edition\swat.exe because it requires Indeo® Decoders of type IV50

Good idea, but when i check the windows application logs as you recommand, Swat 3 dosent show any errors.