Saddened by this, I tried running the demo in my own hardware, only to get the same freeze.
Yikes!
Long story short, I took a closer look at it and quickly discovered that the demo works fine on all machines except 4Mb ones! (of course it won't run on 512k machines but that's by design). After gaining this insight, it wasn't too to devise a fix of the demo for 4Mb machines.
Without furhter ado, here is the patched demo as MSA and ST disk formats.
Enjoy this not that well known demo!