After several days of HELL on earth I finally fixed it. The SonicStage Crash problem looks like a very popular issue for many people as I did a google search for it. The problem had nothing to do with my Sony NW-E002F device instead it was the fact that a program file for SonicStage was not registered properly in windows.
C:\Program Files\Common Files\Sony Shared\AVLib\Frank.dll
How did i figure this out? Thanks to a nice tool from Sysinternals called "Process Monitor" i was able to monitor the SonicStage process (Omgjbox.exe) and just when I would access the device SonicStage would crash in process monitor i was watching what the SonicStage was doing and i noticed a bunch of NAME NOT FOUND entries that point to a registry key. in regedit I could not find the key. however on my other computer which has SonicStage and working just fine i found those keys so I exported them into a reg file below.
omg2.zip (752.00 bytes)
You can try the above file which contains 2 reg files -- i can not guarantee that this will work for you. however the problem is simple. Just make sure Frank.dll is properly registered in your system.
regsvr32.exe is how you can register the Frank.dll
Sony, if you are reading this, please ad some error handling into your application so we can figure things out better!
And now sonic stage works GREAT!
(Sony SonicStage Version 4.3)