Hi,
I have EXACTLY the same problem and setup as you-Lion/Win XP/M1000 with firmware 1.03
I can save you a lot of wasted hours-believe me I tried everything out there and yes they all crash my M1000. I didn't bargain on such a headache and a waste of time when my matrix 1000 came in the mail...it really depressed me for a while.

Just out of professional curiosity, how does it crash Ie. what does it look like when it's crashed - which LEDs are on Does it respond to MIDI messages (notes or program change) Does it respond to at least some buttons What is on the numeric display IIRC M-1000 does not recognize MIDI Reset All (FF) command, but does it still broadcast Active Sense (FE) while in crashed state  

Thanks.