I had the day off today so I performed a repair install on XP and, I'm relieved to say, that it 90% fixed my problem! The actual repair was a little rocky (browsing for drivers, resolving network issues etc..) and once the setup completed the system hanged at a black screen, but it fixed the original BSOD. One thing that remained was a single infected file that I needed OLTPE just to get rid of. A trojan DLL was sitting right in C:\WINDOWS and I couldn't delete or move it in XP so I had to use the BART CD. Not a huge deal but I was ready to kick the side of my computer in when that kept popping up haha.
I need to reinstall SP3 but other than that things seem to be back to normal. I have a sinking feeling that something may still be lurking but perhaps I'm just paranoid lol. I'm actually looking into upgrading my AV to Avast Professional 5.0 some time this week so maybe I will have better luck with that.
Oh yea, and I can't boot into Windows 7 anymore because there is no dual boot screen... probably because the boot.ini was rewritten with the repair? That's pretty much the last thing I need fixed so if anyone could give me some input on that I'd be set.