I did not check on double vertices and scale differences assuming that it would show up if this would be wrong, clearly ignoring K Horseman’s advice, which generally is true for the blending in a first place.
Have to say i was also in doubt it should work at all looking at what domain size was in file downloaded. However after setting bake cache path (as it was pointed out by BrentNewton; i forgot to mention this as it was kind of obvious) and selecting domain object in Outliner and re-baking sim just did work.
AFAIK as soon as you set fluid sim and try to animate, domain turns into fluid - it disappears as it was created before; another thing i consider weird in file since there it’s just a tiny cube inside the tube. Could be because of the lack of bake cache/path to it.
Anyhow, it did work and if i did something else my subconsciousness hides that from me. Did i bring that fluid obj to the layer 1?
Edit: further ignoring all what concerns blender’s modelling best practices, just moving sphere on layer 1 and re-baking sim on XP 32bit, Intel [email protected], 2Gb RAM using same direct h264 render (~1:40 per 25% sized frame):
http://www.pasteall.org/pic/60957 (rename file).
This is something to do with your specific OS settings/hardware, looks like. Can you bring up blender’s terminal window and see what errors come up; better yet start blender.exe from terminal window- if it crashes blender’s terminal will close too - (Run, ‘cmd’ Enter; cd where blender.exe is and run that).