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I have the same problem, I'm playing single player and it's working fine as long as I don't let the launcher update itself. If I update the launcher, start the game and exit it as per the instructions, the launcher will instantly crash. I'm on Windows 7 x64. Vanilla Freelancer and Crossfire 1.9 work perfectly as long as I don't let the launcher update. I have reinstalled .net 3.5 and 4.0, and added the URL to trusted in IE. Problem persists.

For me it definitely crashes, the entire launcher window is blank and I get the Win 7 spinning circle cursor, and a "Illegal Operation" box pops up. All I can do is hit "OK" which closes the launcher. And this is INSTANT as soon as I double click the CF icon. No processes running or anything.But if I DON'T let it auto update, single player runs fine and the launcher works perfectly. This only happens after the launcher auto update.