As "Alan" might say, your file may have "gremlins". I just realized who you were when he mentioned having lunch/dinner with you.
Seriously, the file could be corrupted and nothing might be able to fully restore it, including VRD. If I was attacking this problem, I would start by cutting each file (mpv/ac3) exactly in half with something like hjsplit. (or into smaller pieces) Then attempt to remux each half/section with Imago or mplex. You can always recombine them and adjust lipsync within VRD later.
If the file is damaged, I would expect it to complete the first half and choke on the second at about the same point in the video that it is crashing upon now. If it is a cumulative error then it might be able to remux each half without crashing.
Selecting actual cut points, sizes, obviously may vary with the actual files in use.
Just call me Steve: I never should have used numbers in a screen name, but I just can't stop now.