I'm an idiot
Just wanted to post her and say that I decided to try a different compiler. So I downloaded LCC, compiled the sniffer.... and it works perfectly. This is on the exact same machine I was having the "crash to desktop on the first keyboard press" issues. So if you are stuck feel free to get LCC and take it for a spin.
Now if I had only not gone out and purchased VC++NET for $100...
Oh for the record - my machine is P4 1GHz, Windows XP Pro and originally compiled with VC++NET.