Metamation Frustration!! 
Well, it all turned out that this problem was related to a defective dongle. So, if you're having this same problem, give NewTek a call!
For some frustrating reason, I can't use the new Metamation feature in LightWave 5.0.
The only new thing I've found is that by selecting AH_LazyPoints, THEN selecting Metaform_Shaper, or Metaform_Target, and the program won't crash. It will then crash only when I choose 'OK' in the Metaform_Target Options window. (See screen shot below.)

This is the error message I get if I immediately select Metaform_Shaper (w/o selecting AH_LazyPoints first):

Choosing 'Continue' results in:

When selecting Metaform_Target Options, the pop-up window contains the following text:
(Note: There is no way of selecting the object.)

Choosing 'OK' results in the following error:

The next time I try to start LightWave, I get the following error:

Procedure:

Began with a reinstall of all Windows 95 components from the release CD.
Removed the Win95 Service Pak, and all Win95 'Power Toys'.
Test results using a complete, fresh, install of LightWave 5.0, using the default directory: C:\NEWTEK:
Plugins which crash:
Objects:
Displacement:
Metaform_Shaper 'Requires LW5 or higher'. Continue results in program crash.
Metaform_Target Imediately results in program crash.

Surfaces:
Shader:
Custom_UV_Mapper 'Requires LW5 or higher'. Continue does NOT crash!?!

Effects:
Image Processing:
Image Filter:
BlurFilter 'Unsupported version of Lightwave3D please upgrade now'
Error - Activation failed -2.
Continue does NOT crash.

All other plugins work just fine.

The above is true for the following systems:
P-133, Win95, 32MB EDO RAM, 256K cache.
P-133, Win95/WinNT3.51, 64MB RAM, 512K cache.
Cyrix586-120, Win95, 8MB RAM, 128K cache.


Erik@ELFWorks.com ELFWorks' Home Page