Once this is done, save the file and try starting Darwinia again - sound may still be a little choppy/static prone, but it's acceptable and gets around the start-up crash.
Note: The file is formatted with CR/LF at end of lines (a Dos/Windows thing) and so if after editing this file you still get crashing/same error, it could be that you've inadvertently removed the CR/LF from the end of lines and the program can no longer parse the preferences.txt file. If you get stuck, simply delete the file altogether and using the Steam GUI, verify the game installation - it should download a new copy of the file for you.
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