I am having the exact same problem...and I haven't installed anything after the new V2 727. The first time I used TOM to paint a 727 in Air Canada colors it fails after the Create Aircraft button is pushed...about 25-30% on the progress bar. I guess I'll go look at the Flight1 site for the latest TOM. The one that came with the 727 V2 appears to be corrupted or something.
*EDIT* Apparently the ToM file that comes with the new 727 is a wrong one. Mine had the same appearance as your's and would not work. I had uninstalled ToM before installing the 727 V2.
Anyway...went to http://www.flight1software.com/files...atic_Setup.exe
and downloaded and installed this Tom. It looks completely different...and has worked flawlessly, so far.