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resolved

Was starting to think that my computers RAM was going bad because over the past couple weeks of leaving my computer on over night it would freeze up when I tried to use it.

I then started to get could not read memory errors in vanishing point which led me to use memtest86

I then started up memtest86 and ended up with a few errors... not looking good right?

Turns out memtest86 doesn't handle multiple memory modules very well so I scanned them one at a time and got no issues.

I then found out after searching for the photoshop issue that if you have auto-hide taskbar enabled (which I enabled a couple weeks ago) your computer will freeze after being idle.

I then was left with the photoshop issue after doing the troubleshooting I mentioned previously I was at a loss until Iain(from a different forum) shot me a message about some Windows 7 issues so I started to disable some stuff and dwm.exe (the Desktop Window Manger) ended up being the culprit.

Long story short don't use auto-hide taskbar, scan one memory module at time with memtest86 and kill dwm.exe in Windows 7 atleast when using Photoshop. Hopefully these issues get patched soon.

Here is a quick guide to permanently disabling dwm.exe if you wish.. It will kill your pretty theme though. How to Speed up Vista Tips: Disable the Windows Desktop Manager (Tip #006) | eHow.com

P.S. This post is long winded because I hate when I come across a resolved issue post that either doesn't have an answer or not enough information.