*** UPDATE *** UPDATE *** UPDATE ***
First and foremost, I would like to thank the individuals who responded. "Listen Up", "These are the people who make the product GREAT, not the vendor's".
With this said, I appreciate the answers, although the answers were a little bit on the KISS side. I understand that the vast majority of individuals really need this but I was way past this step before I created the thread.
I have finally resolved the issue and wanted to past this issue along incase anyone else has the same issue. The previous responders all did the correct approach to addressing the issue. However, I need to get a bit further, I wanted it to work regardless on the time spent on it. If AMD/ATI/ASUS had a better service, I properly would have sent the whole package to one them to "fix it" ! I also know a number a number of local computer savvy individuals who would have easily taken money from me without any knowledge of what they are doing....
For me this is how I solved the issue, first I did exactly what the other posters had already told me to do. My first step was to eliminate software as the issue. Since I had already installed the software many times already, it must be a hardware or BIOS setting's. In regards to hardware, I have a mobo, DIMM, PS; no add-on cards installed eliminate that as an issue. BIOS was backed up and updated. Results were still the same. I messed around attempting various BIOS settings, this did change the end result. I changed the monitor from a D-pin to HDMI monitor, with still the same results. BTW; the first monitor was a flat panel from ACER with only a D-pin connector. The second is a newer flat panel from Dell with D-pin and HDMI connectors.
I found an older RADEON 4670 add-on card, installed that to the D-pin ACER monitor and booted with RADEON 6550 HD disabled allowed MS Windows to install the driver. I then rebooted with the RADEON 6550 HD enabled. It worked like a charm no issues. I left the system up and running for 24+ hours at idle and then with a load, still no issues. You might be asking what this proves, this proves that AMD/ATI Catalyst drivers were installed and running correctly and that there was not a problem with PS or DIMM’s. This did not prove that the 6550 HD AMD/ATI hardware display driver was correct, but all other components of the ASUS/AMD/ATI system were, for the most part working. I still did not have the IGFX, but I did have a running system. All right, next was to take a step back and double check everything.
I also have an odd Gateway flat panel that I really like. I say odd, because it has HDMI, DVI, and VGA (aka D-pin) inputs. It also has a 16:10 aspect ratio. Call me old if you want but, I like 16:10 as oppose to 16:9 aspect ratio. I think that vendors would sell a lot more flat panels if they revert back to 16:10, especially since the older people purchasing the monitors preferring 4:3 would go to 16:10 first. Anyway I plugged this into the RADEON 4670 D-pin and then to the DVI, without any issues ! This proves that this monitor would work with this mobo combination and nothing else. I fully understand that.
For S&G I moved the Gateway monitor to the RADEON 6550 HD D-pin connected and booted. No issues with the system. Next step, for S&G, was to check that HDMI would work and it did. You got keep in mind that the RADEON 4670 was still installed and enabled. Next step was to disable the RADEON 4670 and test, it worked, Next step was to delete and remove the RADEON 4670. It still worked without any issues.
IN SUMMARY
The flat panels that I was previously using: the ACER (D-pin) and Dell (D-pin and HDMI). Was causing the BSOD, mouse lock-ups, and system reboots. A odd Gateway flat panel fix this issue. I do fully believe that an AMD/ATI/ASUS software revision would have fixed the issue by now. But, I guess this is what the call being on the “bleeding edge”.