UPDATE...
Problem still resides. Definitely ati driver.
Tried the following, as recommended by the windows error reporting (after receiving STOP Error: Thread stuck in driver
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<b>WORKAROUND</b>
To work around this issue, follow these steps:
Click Start, click Control Panel, and then double-click Display.
On the Settings tab, click Advanced, and then click the Troubleshoot tab.
Move the Hardware Acceleration slider to None, and then clear the Enable Write Combining check box.
Click OK, and then click OK.
Note This procedure prevents the display driver from programming the hardware incorrectly, but you may lose some display functionality and performance. Although you can increase the hardware acceleration settings higher than None to regain functionality and performance, these settings increase the chance that the issue will occur again. For maximum stability, leave hardware acceleration off.
MORE INFORMATION
This Stop error message may also occur in video adapter drivers that do not represent a physical device. For example, this Stop error message may occur in the virtual video adapter driver that is used by Symantec PCAnywhere. If PCAnywhere is installed on a computer where this error message occurs, visit the Symantec Web site to determine if there are any available fixes for your version of PCAnywhere.
The third-party products that this article discusses are manufactured by companies that are independent of Microsoft. Microsoft makes no warranty, implied or otherwise, regarding the performance or reliability of these products.
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This did not resolve the issue. Still getting blue screens. Head starting to hurt after pounding head against wall stopped...
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Marshall Giroir