Since no one could help me with this, I want to post the solution here, just in case anyone else encounters this and needs help.
In the "Pakcages folder" there is a folder called "Live CSS". This is what was crashing ST2. The livecolors file was slowing ST2 and causing the crash.
I remove this "Live CSS" folder and also deleted the ST2 preferences file ( just in case ) and everything is working good now.
ST2 created a bran new "Live CSS" folder and preference file.
Everything is good now.