Dalanis has issues. In certain spots in the city, new textures/geography is loaded, and that process seems to be memory intensive or buggy. As Romage said, restarting client usually avoids the problem, but that is not a solution, just avoidance.
That said, lately Dalanis is really good to me. I crashed only once in last 4-5 visits, and I have not reentered the game just to avoid the crash. Not sure if my experience is universal or not, but it seems like some Dalanis cleanup was done.
-- Rustyx --- 92R / 92S / 92M on Reni (Guild KnightShift). Yes, running the new FOTM R/M, cause I am not elf enough to be WD/S.
Oh, and people who have more than 3 classes are clinically insane.