For best performance with the 8600M GT series, I recommend the following:
Make sure you've upgraded OSX to version 10.5.5. It is my understanding that the drivers were improved in this release, so it's well worth taking the time to check.
In the SL viewer, the first thing you will want to do is the geekiest.

Press CTRL-Option-D to bring up the Advanced menu at the top of the screen. Now, click on Advanced -> Rendering -> Run Multiple Threads. This tells SL to use all of your processor cores. Once you've enabled that, press CTRL-Option-D again to hide that advanced menu (you won't ever have a need to mess with most of that stuff anyways, so may as well keep it out of the way). Next, quit and restart SL for that change to take effect.
Next step, you need to adjust hardware options. Cmd-P to bring up Preferences, then click on the Graphics tab, and click on the Hardware Options button. You should then see a slider for texture memory. Make sure that's set to no more than half of the total amount of video memory in your machine. For most people, setting to 128MB is ideal. If you run other programs at the same time (especially big graphics apps like Photoshop), you may want to set the number to a lower value. Close that dialog by hitting Okay.
On the main Graphics tab, tick the little checkbox marked Custom (if it's not already ticked). That opens up a tangle of additional graphics settings. Here are my suggestions on changes to make. Uncheck "Hardware Skinning" and "Avatar Impostors". Make sure that your particles slider is under 4096. If you're really having performance issues, you can drop that down to 2048 and still see plenty of sparkles, poofs, and flame effects. Finally the really crucial one... draw distance. I'll bust that into a separate paragraph, since it's worth explaining.
Draw distance tells SL how much stuff to draw. Imagine drawing a line starting at your avatar and then moving away in a straight line for the distance you set with that slider. SL then takes that number and uses it as a radius to draw a giant sphere around your avatar. It will then try to draw every prim and load every texture inside that sphere. The bigger the number, the more it has to load. If you hang out in crowded sims and clubs and stuff, drop this way down - 64. If you're on less populated sims that are highly detailed, set it to 96. Otherwise, 128 should be the most you really need to see. Most of your interactions and explorations are probably happening within a 20 meter radius, so even the lowest setting should be fine.
Once you've done that, hit okay to close the preferences dialog box. Now restart SL one more time. When you restart, it saves all those settings, and now if you should happen to crash, SL will be able to remember all the stuff you've just tweaked. You can continue to tweak the other sliders from here - adjusting detail levels as you see fit to get better or worse performance.
As an end to my long ramble, let me explain why I believe the crashes are happening. I think what's happening is that the SL viewer is overwhelming the video card. Normally when the drivers are working perfectly the program and the operating system work behind the scenes to keep that from happening, and at worst you just see lag within the game. But somewhere in the mix on the 8600 series, that is not happening properly. It doesn't matter whether you want to blame nVidia, Apple, or LL, the situation just is what it is right now. So by manually adjusting the settings, you can greatly reduce the amount of work the video card is getting thrown at it, and reduce the number of crashes you experience. It is expected that the 10.5.6 update will improve things on Apple's end in a big way, and the release notes on the 1.22 RC2 viewer seem to indicate that they're improving things for 8600M GT users.
Good luck!