Hmm, that's odd, normally it would generate something, and with the protections off it shouldn't have that much trouble writing a log file. How much memory is free on your system before you start the game?
I'm looking at the code for steps 4, and it's initializing the screen resolution, a ton of data classes, checks for updates (if auto-check is enabled, which it is by default), and some other stuff. Perhaps we should split out that chunk a bit
In case it's the auto-update thing, can you try replacing your settings.dat in the RuntimeData subfolder (create settings.dat if it doesn't already exist) and paste this into it:
SERIALIZATION_VERSION:67
DisableSound:1
DisableMusic:1
SortShipTextures:0
ShowScoreByDefault:1
AllowEdgePanning:1
KeepPlayingMusicWhilePaused:1
AutomaticallyCheckForUpdates:0
UseTBSFriendlyPause:1
RestoreZoomWhenActivatingControlGroup:0
ZoomInHotkeysCenterOnCursor:1
SizeWindow:1
ReversePanSpeed:0
ReverseZoomSpeed:0
AlwaysShowPlanetNames:0
AlwaysDisplayWormholeNamesTopmost:0
OmitMarkINumerals:0
ShowIntelSummaryByCursor:0
HideShipBarsInFarZoom:0
ShowShipRechargeBars:0
ShowMinimapBoxOnTopOfShipBlips:0
LastShowSaveLoadByDate:0
LastHasCloaking:1
LastHasTeleporting:1
LastHasHeavyDefense:1
LastHasMines:1
LastHasParasites:1
LastHasStarships:1
LastHasTurrets:1
LastHasTractorBeams:1
LastEnableCheats:1
LastShowsNonScoutedWormholeLinks:1
KeepAutosaves:0
DisableStarfields:0
DisableNebulae:0
DisablePlanetDisplay:0
DisableJunkRockDisplay:0
HideShots:0
HideExplosions:0
DisableDamagedShipSmoke:0
DisableBoostLines:0
DisableForceFieldRotation:0
SkipBatchNetworkSending:0
IsFullscreen:0
ReduceVisualStimulation:0
DisableHoldShiftToMultiPlace:0
TreatLeftAndRightModifiersAsSeparateKeys:0
WindowWidth:1024
WindowHeight:768
IconGroupingDistance:12
CurrentProfileIndex:-1
LastMapSeed:1087402344
LastNumberOfPlanets:80
LastAutoAIProgressAmount:1
LastAutoAIProgressMinutes:30
AutosaveInterval:10
NetworkPort:32320
MaximumTransmissionUnit:1400
masterSoundVolume:100
weaponVolume:70
explosionVolume:80
voiceVolume:98
interfaceVolume:95
shipSoundsVolume:70
alertsVolume:80
musicVolume:90
LastAI1Difficulty:6
LastAI1Handicap:0
LastAI2Difficulty:6
LastAI2Handicap:0
ZoomIncrements:20
ZoomSpeedNew:10
KeyboardZoomSpeed:10
PanLevel:4
ShowIconsAt:21
NebulaDetail:100
MinimapSize:1
ShowVersionWarning:0
FullscreenWidth:1280
FullscreenHeight:768
FullscreenPreferredRefreshRate:60
LastManualServerIP:
Language:
LastFoundAIWarVersion:
LastFoundBetaVersion:
LastFoundZenithVersion:
LastFowType:0
LastShipDifficulty:1
LastCombatStyle:1
LastUnitCapScaleType:0
LastPerformanceMode:2
LastMapStyle:0
LastGalaxyDisplay:7
LastGalaxyFilter:0
LastAI1Type:21
LastAI2Type:21
NetworkSyncSize:6
LastAI1Color:-5952982
LastAI2Color:-831487
ExpansionsDisabled:
LastAIMods:
Note that normally settings.dat will contain private data (license keys, not in plain text, but still) and so shouldn't be posted. But this is my settings.dat with those removed and some sanity added.
Anyway, if you can give it a try with that, it might help narrow things down a bit.