Windows 8. Unreal World 3.40 (stable) with Shaman Mod 3.42.
Unreal World was locking up on me. The entire computer would suddenly become unresponsive. No mouse, no BSOD. Just frozen in place with the game screen showing. Couldn't soft boot. After a few minutes, Windows would sometimes come back with a DPC_Watchdog_Violation error and reboot. Then on reboot, the bootup sequence would fail to recognize the hard drive. Then a second reboot would recognize the hard drive and load Windows just fine.
Here's the solution that worked for me: Create a desktop icon from which to run Unreal World. Right click on that icon to get Properties, then go to the Compatibility tab. Set Compatibility Mode to Windows 7. No more lockups.