unity 4.1.2f1 crashes whenever i try to drag a prefab to scene

unity 4.1.2f1 keeps crashing whenever i try dragging a prefab onto the scene. Any idea on what could be causing this, it’s not even giving me any addition information.
laptop spec
Windows 7 64bit
2gb Ram
2.4GHZ intel core

As mentioned I had this issue too. Fixed by reverting to 4.2.0f (select other versions from the Unity download).

Trying disabling the object with Interactive Cloth on it. If you’ve deleted the original from your scene you might be screwed. If you still have it in your scene, you can disable the cloth gameobject, and re-apply the prefab.