I had the same issue with dyndolod giving errors, each single time it was a different and random error. The solution was to simply add the following lines to TexGen_SSE.INI:
RenderSingle=1
RenderTrxturesSingleThread=1
I struggled for over 2 days reinstalling drivers and randomly a google search took me to this post which actually fixed the issue for me as well.
I made an account just so that I can say: THANK YOU!