After beating my head off the wall for basically 2 days straight (I finally got annoyed enough to track down this issue), I downgraded vbios, motherboard bios to stock, used a 2nd hard drive installed fresh copy of windows, installed only sp1, went and installed video drivers, opened browser and started to notice something that I could finally make happen every time. It can be seen here in this video Weird Blocks on mouse over links and text - YouTube. I did a search for archived video drivers and came to notice someone with a different model 5xxx series ati card said they had issues (never stated specifics) on a 12.6 driver and reverted back to 12.4 well I had nothing to loose so went and uninstalled my current driver which was the latest driver 12.10, ran ati crap cleaner, and installed 12.4 series driver and bam no more black block(could this be the resolution to my weird pixels as well? lets hope so), so now I have re updated the vbios and motherboard bios to current versions and in almost 24 hrs no bsod, no weird pixels, seams all is good now lets just hope it stays this way. Thanks for all the help and being inspirational for me to finally dig though this and resolve the issue.
The site I found the drivers on was An archive of AMD Mobility Catalyst Windows 7 x64 drivers – PCR's notepad