I got a working solution which I posted on the 'Game crashes at first dragon encounter' and I thought I should make a new thread and help as many people as possible for those suffering from this issue.
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Alright good news guys I managed to fix it for myself and got through the crash.
Seriously we get no help these days and this is the 5th game I had to find my own solution for (and it was not my computer's fault either, all of them were also PC ports for console games; funny that).
Basically from what I read of the problem as well as anolysing youtube videos of how the scene was supposed to play out, I was thinking that somehow the game was crashing because of all the particles and renders it caused a sudden shock to the system or that perhaps somehow there were settings in the game which restricted your computer from properly rendering/drawing all the lightning and effects that went on with that scene.
So the first thing I did was went down to my SkyrimPrefs.ini file (Under 'My Games' in 'Documents'), opened it with Notepad where I doubled certain values which I thought would be relevant.
And so my SkyrimPrefs.ini would read:
[Display]
fShadowBiasScale=0.2500
fInteriorShadowDistance=3000.0000
fShadowDistance=4000.0000
iBlurDeferredShadowMask=3
bFloatPointRenderTarget=1
iShadowMaskQuarter=4
iShadowMapResolution=2048
bFXAAEnabled=1
iMaxAnisotropy=8
fGamma=1.0000
iShadowFilter=3
fDecalLOD2=1500.0000
fDecalLOD1=1000.0000
fSpecularLODStartFade=1000.0000
fShadowLODStartFade=200.0000
fLightLODStartFade=2500.0000
iTexMipMapMinimum=0
iTexMipMapSkip=0
bTransparencyMultisampling=0
iWaterMultiSamples=0
iMultiSample=8
iShadowMode=3
bTreesReceiveShadows=0
bDrawLandShadows=0
bDrawShadows=1
bFull Screen=1
iSize H=1050
iSize W=1680
fLeafAnimDampenDistEnd=4600.0000
fLeafAnimDampenDistStart=3600.0000
fTreesMidLODSwitchDist=5000.0000
fMeshLODFadePercentDefault=1.2000
fMeshLODFadeBoundDefault=256.0000
fMeshLODLevel2FadeTreeDistance=2048.0000
fMeshLODLevel1FadeTreeDistance=2844.0000
fMeshLODLevel2FadeDist=10000000.0000
fMeshLODLevel1FadeDist=10000000.0000
iScreenShotIndex=0
bShadowMaskZPrepass=0
bMainZPrepass=0
iMaxSkinDecalsPerFrame=20
iMaxDecalsPerFrame=100
sD3DDevice="ENB"
iAdapter=1
iPresentInterval=1
[Imagespace]
bDoDepthOfField=1
iRadialBlurLevel=2
[Grass]
b30GrassVS=1
fGrassStartFadeDistance=5000.0000
fGrassMaxStartFadeDistance=7000.0000
fGrassMinStartFadeDistance=400.0000
[Water]
iWaterReflectHeight=512
iWaterReflectWidth=512
bUseWaterDisplacements=1
bUseWaterRefractions=1
bUseWaterReflections=1
bUseWaterDepth=1
[MAIN]
fSkyCellRefFadeDistance=150000.0000
bGamepadEnable=1
bCrosshairEnabled=1
fHUDOpacity=1.0000
bSaveOnPause=1
bSaveOnTravel=1
bSaveOnWait=1
bSaveOnRest=1
[GamePlay]
bShowFloatingQuestMarkers=1
bShowQuestMarkers=1
iDifficulty=2
[Interface]
bDialogueSubtitles=0
bGeneralSubtitles=0
bShowCompass=1
[Controls]
fMouseHeadingSensitivity=0.0125
fGamepadHeadingSensitivity=1.9000
bAlwaysRunByDefault=1
bInvertYValues=0
bGamePadRumble=1
[Particles]
iMaxDesired=2000
[SaveGame]
fAutosaveEveryXMins=15.0000
[AudioMenu]
fAudioMasterVolume=1.0000
fVal7=1.0000
uID7=0
fVal6=1.0000
uID6=0
fVal5=1.0000
uID5=0
fVal4=1.0000
uID4=0
fVal3=0.5000
uID3=466532
fVal2=0.8000
uID2=554685
fVal1=0.8000
uID1=1007612
fVal0=1.0000
uID0=94881
[Clouds]
fCloudLevel2Distance=262144.0000
fCloudLevel1Distance=32768.0000
fCloudLevel0Distance=16384.0000
fCloudNearFadeDistance=9000.0000
[General]
iStoryManagerLoggingEvent=-1
bEnableStoryManagerLogging=0
[TerrainManager]
fTreeLoadDistance=75000.0000
fBlockMaximumDistance=250000.0000
fBlockLevel1Distance=70000.0000
fBlockLevel0Distance=35000.0000
fSplitDistanceMult=1.5000
bShowLODInEditor=0
[Trees]
bRenderSkinnedTrees=1
uiMaxSkinnedTreesToRender=40
[Decals]
uMaxDecals=250
bDecals=1
bSkinnedDecals=1
uMaxSkinDecals=100
uMaxSkinDecalsPerActor=80
[LOD]
fLODFadeOutMultSkyCell=1.0000
fLODFadeOutMultObjects=7.5000
fLODFadeOutMultItems=4.5000
fLODFadeOutMultActors=6.0000
[BlurShaderHDR]
bDoHighDynamicRange=1
[BlurShader]
bUseBlurShader=0
[Launcher]
bShowAllResolutions=1
uLastAspectRatio=4
At this stage I recalled somewhere that the 'Skyrim.ini' file auto regenerates when deleted, and recalling from my previous experiences with buggy games sometimes deleting these settings can help (though you backup of course).
So I deleted 'Skyrim.ini'
Imagine the magnitude of the heart attack I had when my game got past the blasted scene.
I hope this helps at least several people.
PS: I took a VERY hack and slash approach to this 'fix' with probably lots of unnecessary value changes to the .ini file, please don't blame me too much for that and hopefully someone can post a more complete 'refined' fix to the game.
Edit: I tried another new game to test this, which was also working so it was not a fluke.
