Ok, did what you said in the above post as well as installed that tool.  Cleaned the reg.  Working along moving some pictures from a thumb to my external HD and bam.  BSOD.

0X24

0X001904FB, 0X89725468, 0X89725040, 0X8B81B7FS

NTFS.SYS - ADDRESS 8B818B7FS BASE AT 8B80E000 DATESTAMP 4A5BBF45

Instead of fixating on bam, I should have read what was before it. USB to USB?

I need to know every storage device hooked to this machine, fixed or temporary.

Un-plug the MyBook. Try to provoke a blue screen...

Stepping away prior to punching the screen is a good idea.

When you're ready to resume this 'ordeal' here are my thoughts. Since I do not know your computer specs, they are not in any particular order, so they can be eliminated in any manor you feel like.

1- The machine is overclocked. If it is, load bios defaults.

2- Memory is throwing errors. http://www.memtest.org/ (burn .ISO to CD and boot it)

3- One (or more) of your External drives has errors. You can run CHKDSK X: /F /R on any drive (sub drive letter in place of 'X')

4- Ready boost is enabled and/or your DVD is being utilized by storage software (ie: Nero).

Now, being a believer in the adage that life is too fucking short, I would suggest after eliminating all of the above (and you must eliminate them or you're wasting both our time) that you format your system drive utilizing the Win 7 DVD and proceed with new install of Windows. Let it update, but do not install any other software and do not attach any other storage devices. Note: prior to install, boot into bios and disable all non-use ports: IEEE 1394 interface, Firewire, Com ports, etc. 

See what it does....or better yet....what it doesn't do....... 

This sounds ironically similar to this issue which I was having.  My internet would also lose connectivity on the wireless, and I'd need to reboot to make it work again.  KB976972 fixed my issues:

http://support.microsoft.com/kb/976972

Although, I don't guarantee this to even help your issue...  Could even make it worse if you aren't running that same chipset...  But, isn't a shabby "last resort".

Really depends on your machine messiah1.  It works for me, although I have an HP S3620F:

http://h10025.www1.hp.com/ewfrf/wc/document?docname=c01527426&lc=en&dlc=en&cc=us&lang=en&product=3794733

Due to this, my chipset is as follows:

NVIDIA GeForce 7100 / NVIDIA nForce 630i

And so, is the root of my errors and why I needed the KB to begin with.  If you'd like to look into your chipset a bit more, if you have the same one I guarantee that KB will resolve your issue.  If you don't...  I guess it couldn't hurt, but if that's the case please post your specs above like I did for my machine.

EDIT:  Should also mention I'm running Windows 7 Ultimate (64-Bit).

Oh man! They always do this with programs! Ok...so...when does the dvd come out so I can see the ending for this!

^  

When I take over the world, you will not be on the protected species list doc.  Just sayin'.

Does anyone smell rubber burning? Since doc has gotten here I've been smelling rubber and his Karma has been going up like crazy!

I smell something...not sure it's rubber though.