That's odd... I'd heard of SP2 causing some problems with such devices, but I would think downgrading would fix this... Perhaps it is dying? I've had some devices like soundcards die in computer and cause similar problems until disabled...
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Urban De-Development
* Athlon X2 4200 | 2048M RAM | 160G HD | 7600GT
* C2D T5250 | 2048M RAM | 160G HD | Intel x3100
* G4 1.33GHz | 512M RAM | 40G HD | Radeon 9200
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