I couldn’t work out why the demo was crashing at the 3 min mark and it bugged me. It turns out the demo is simply a bunch of BASIC programs strung together. It was crashing at a corrupt file. I re-imaged the demo disk and it now works fine. Be aware it is a 10 min demo.
While playing around with the disk I also found one BASIC file that wasn’t being played by the demo (special thanks to Warren Toomey for telling me to look for it on the demo disk). Clearly an Easter egg. I have included the output of that file here as well. No spoilers but let’s just say that Dick Smith and VTech didn’t stop at ignoring Apple’s copyright.