The exact same thing happens to me too. But I also get a "blue screen of death" (windows 7).
Rymrgand smashes the ground with his axe. Then, as the animation travels downwards after the smash, the sound gets all distorted and the game freezes. Then I get the BSOD. I have tried 3-4 times and this happens everytime I refuse him.
I can't find a crash report, perhaps because of the BSOD?