this its your biggest issue u need a better processor

trust, angelshalo know wuts the deal
oh god, please without minimum PC literacy dont jump into giving false advice.
low CPU power will never result in crashes, with games it will only result in low FPS, the game will stutter or lag, or whatever you might call it, but it will certainly not crash as long as the CPU can utilize enough system memory for reading and dumping data. not with normally written code anyway.
it is more than obvious that these crashes are caused by memory bottlenecks. in your case it will be the GPU memory, as system memory is more than adequate for 10+ bots.
try to dumb D3 down as much as possible graphically. if memory serves me right each instance of D3 used appr. 380MB system memory and appr. 150MB of VGA memory when i did this, so with a little tweaking you could squeeze in one more instance, maybe 2 even, but if you want to hit 10+ you will need to get a VGA with 2GB.
however there is some truth to whats been written. if you try to run more than 2 instances on a single CPU thread, the game may very likely become so "unresponsive" (in other words it will be lagging like hell), that demonbuddy will not be able to do its job. i know this from experience cause i hadnt been able to run 3 instances properly on a single thread of a C2D CPU@4Ghz, there were too many deaths because of lag, due to the fact that the incoming data and demonbuddy were too much out of sync the CPU choking on data all the time. with more modern system architecture though 3 instances / thread may not be too much, cant say really, as I dont own that kind of system.
so basically if you want to go over 8 bots, you may not only need to upgrade your VGA (which is definitely your biggest bottleneck right now and the reason for frequent crashes), but likely your CPU as well. but you dont need a faster CPU, you just need more threads/core as previously suggested. should you decide to upgrade your CPU, get an I7 with 4 cores, which will give you 2 threads / core = 8 threads in total, so you will be fine up to at least 16 bots.
and yeah, do this by all means:
"OP - Turn down your game graphics to the absolute min (there's a thread with a config file in it to use), cap your FPS at 15/15, up trinity cache to 500, and adjust ticks anywhere from 4-6. "