Using "set GPU_MAX_ALLOC_PERCENT=100" in Windows allows the program to run, but it doesn't hash at all and does not create a memory pad on the GPU.
I reported this several weeks ago and it still hasn't been addressed.
[2012-10-05 16:01:03] Started cgminer 2.7.6
[2012-10-05 16:01:03] Started cgminer 2.7.6
[2012-10-05 16:01:04] Probing for an alive pool
[2012-10-05 16:01:04] Long-polling activated for http://ltc.kattare.com:9332/LP
[2012-10-05 16:01:06] LONGPOLL from pool 0 detected new block
[2012-10-05 16:01:15] Maximum buffer memory device 0 supports says 524288000, your scrypt settings come to 0
[2012-10-05 16:01:15] Error -61: clCreateBuffer (padbuffer8), decrease CT or increase LG
[2012-10-05 16:01:15] Failed to init GPU thread 0, disabling device 0
[2012-10-05 16:01:15] Restarting the GPU from the menu will not fix this.
[2012-10-05 16:01:15] Try restarting cgminer.
Press enter to continue:
There's the error code for you.
You should be able to easily replicate this just by setting --thread-concurrency 12288 (which works fine on reaper).
I'm pretty sure the problem has to do with these lines,
clState->padbufsize = bufsize;
clState->padbuffer8 = clCreateBuffer(clState->context, CL_MEM_READ_WRITE, bufsize, NULL, &status);
size_t bufsize = 128 * ipt * cgpu->thread_concurrency;
ipt is an unsigned integer, but thread_concurrency is a signed one. Maybe that's all there is to the overflow. I'll dick around with it before the next release.
EDIT: and by the way, I can't replicate any of this without windows...