Lion 10.7.2 Constantly Freezing Crashing on MacBook Pro

Question

I am at my wits end! My MacBook Pro (MacBookPro2,2 2006) is constantly crashing and/or freezing. Everything was perfectly fine until I installed the 10.7.2 update. Then things started to get progressively worse. Now I can't go 15 minutes without the system freezing up or crashing. It crashes 20 times a day or more and is completely unusable at this point. I really need to get work done and don't know what else to do.
It doesn't seem to matter what applications are open. I thought at first maybe it was Safari or Mail but I've had it hang or crash with just the Finder open. Sometimes it just freezes up yet, if iTunes is playing music, the music will continue to play in the background but you can't interact with anything. Sometimes the mouse pointer will still move and sometimes it won't. Sometimes I'll get the spinning beachball of death. Other times it will just instantly restart on its own. A couple times the screen just rolled to grey then died. I never get a crash report that I can post or send to Apple.
I am very technically proficient and have done absolutely everything I can think of at this point including:
* Resetting PRAM.
* Repairing disk permissions and running a disk check
* Ran TechToolPro and everything came back OK.
* Updated all software and removed any weird kernal extensions.
* Unhooked any attached peripherals.
* Tried different networks or switching to wired ethernet.
* Logged in with Shift key down so no extra software loaded.
The ONLY thing that seems to work is starting up in Safe Mode by holding down the Shift key at boot. Which is what led me to think that maybe some rogue kernal extensions were to blame but I removed all but the blessed Apple extensions. Safe Mode loads only the most basic system software so is not very usable. The fact that it runs OK here makes me believe it must be a bug in Apples 10.7.2 update but who knoes what part since so much of the OS is not loaded in Safe Mode.
I've also tried running Apple Hardware Tests (AHT) but can't get it to run for the life of me. I followed another postwhere we copy the .diagnostics folder into /System/Library/CoreServices from the original software discs that came with the computer but holding down the "D" key on startup still doesn't invoke the tests. Won't run off the CD either. I get some weird circle with a slash through it. Going to take it in to the Genius Bar tomorrow and have them run the hardware tests. I'll report back after but I don't feel too sure they're going to have a good answer.
A side issue now is that, after all this, my MacBook Pro takes over half an hour to boot each time. It appears to be doing a Safe Boot no matter what even though I don't hold down the Shift key at startup. I always get the progress bar under the Apple logo and I think it is doing a fschk each time. But when it finally comes up it's not actually in Safe Boot mode. It never used to do this and I can't get it to stop. With all the crashes and now this incredibly long startup each time I'm about to throw this thing out the window.
I've read hundreds of other posts across the Internet with like experiences but no good answers. A lot of people seem to think it is an Nvidia graphics card related issue or a discrete graphics issue but my older machine doesn't have swithable graphics and it's card is ATI. But I do sometimes get strange graphic artifacts on the screen before it crashes and some Apps have lines through their interfaces so I'm wondering if the latest system update screwed up graphics drivers?
I'm posting here in the hopes that someone, anyone, can help me!!! I think Lion 10.7.2 has serious bugs and is one of the worst updates Apple has ever released.
Is anyone else having similar problems and does anyone out there have a solution?!!

Answer 1

FINALLY got Lion to produce a crash report during one of these disasters. Like my gut was telling me this seems graphics driver related. Here it is:
Interval Since Last Panic Report:  -3210485 sec
Panics Since Last Report:          1
Anonymous UUID:                    A83A615F-B88F-4999-9770-1B8A3CCCF56A
Sat Jan 21 02:46:16 2012
panic(cpu 1 caller 0x2cdabf): Kernel trap at 0x0183a649, type 0=divide error, registers:
CR0: 0x8001003b, CR2: 0x43463000, CR3: 0x00100000, CR4: 0x00000660
EAX: 0x00000002, EBX: 0x07120000, ECX: 0x00000000, EDX: 0x00000000
CR2: 0x43463000, EBP: 0x4939bd78, ESI: 0x0712f800, EDI: 0x00000002
EFL: 0x00010246, EIP: 0x0183a649, CS:  0x00000008, DS:  0x00000010
Error code: 0x00000000
Backtrace (CPU 1), Frame : Return Address (4 potential args on stack)
0x4939bba8 : 0x22032e (0x6ad86c 0x4939bbc8 0x229f00 0x0)
0x4939bbd8 : 0x2cdabf (0x6b9c3c 0x183a649 0x0 0x6b9b29)
0x4939bc88 : 0x2e3e34 (0x4939bcb0 0x4939bc98 0x4939bca8 0x0)
0x4939bca8 : 0x183a649 (0xe 0x7110048 0x49390010 0x630010)
0x4939bd78 : 0x183b660 (0x712f800 0xafc8 0xa53c 0x4939bdb0)
0x4939bd98 : 0x1847dc0 (0x712f800 0x4939bdb0 0x4939bdb8 0x607df2)
0x4939bdf8 : 0x1847e6c (0x7118800 0x4939be08 0x1a7 0x1c2)
0x4939be38 : 0x181ba99 (0x7118800 0x0 0x0 0x710e000)
0x4939be58 : 0x181dd7e (0x710e000 0x0 0x4939be88 0x23f675)
0x4939be88 : 0xfa51d4 (0x710e000 0x20646773 0x0 0xfaedec)
0x4939beb8 : 0xfa5228 (0x710e000 0x45 0x4939bee8 0xfaee61)
0x4939bee8 : 0xfaaa08 (0x7fb1200 0x45 0x6607d8 0x867840)
0x4939bf28 : 0x661b7a (0x7207580 0x70b8e00 0x1 0x2c457d)
0x4939bf68 : 0x6609c8 (0x70b8e00 0x73743f8 0x0 0x66dfac0)
0x4939bfa8 : 0x660844 (0x7207580 0x66dfac0 0x720759c 0x72493f8)
0x4939bfc8 : 0x2c6d0c (0x7207580 0x0 0x10 0x7aa71d0)
      Kernel Extensions in backtrace:
         com.apple.iokit.IOGraphicsFamily(2.3.2)[26D3FB6E-BBEB-45EE-9088-3099D2D09F78]@0 xf97000->0xfc8fff
            dependency: com.apple.iokit.IOPCIFamily(2.6.7)[82A51E17-453D-40F5-BF0E-DD89598C76DB]@0xaed0 00
         com.apple.kext.ATI1600Controller(7.1.2)[2DF2D325-D669-444E-97FA-5166E109C518]@0 x182e000->0x185cfff
            dependency: com.apple.iokit.IOACPIFamily(1.4)[78EFF11D-3C74-40FD-9948-191DDC4E44C0]@0xabc00 0
            dependency: com.apple.iokit.IOPCIFamily(2.6.7)[82A51E17-453D-40F5-BF0E-DD89598C76DB]@0xaed0 00
            dependency: com.apple.iokit.IOGraphicsFamily(2.3.2)[26D3FB6E-BBEB-45EE-9088-3099D2D09F78]@0 xf97000
            dependency: com.apple.kext.ATISupport(7.1.2)[AA9B5C8F-D250-4112-B1E5-9D4F63935B92]@0x162900 0
         com.apple.kext.ATIFramebuffer(7.1.2)[3176A7CF-8C84-4300-BD27-46796A47987D]@0x18 17000->0x182dfff
            dependency: com.apple.iokit.IOACPIFamily(1.4)[78EFF11D-3C74-40FD-9948-191DDC4E44C0]@0xabc00 0
            dependency: com.apple.iokit.IOPCIFamily(2.6.7)[82A51E17-453D-40F5-BF0E-DD89598C76DB]@0xaed0 00
            dependency: com.apple.iokit.IOGraphicsFamily(2.3.2)[26D3FB6E-BBEB-45EE-9088-3099D2D09F78]@0 xf97000
            dependency: com.apple.kext.ATISupport(7.1.2)[AA9B5C8F-D250-4112-B1E5-9D4F63935B92]@0x162900 0
BSD process name corresponding to current thread: kernel_task
Mac OS version:
11C74
Kernel version:
Darwin Kernel Version 11.2.0: Tue Aug  9 20:56:15 PDT 2011; root:xnu-1699.24.8~1/RELEASE_I386
Kernel UUID: C2810CF8-D672-3301-8D3F-ED56974A80E1
System model name: MacBookPro2,2 (Mac-F42187C8)
System uptime in nanoseconds: 106928438687
last loaded kext at 72538426224: com.apple.driver.AppleBluetoothMultitouch          66.3 (addr 0x1c42000, size 49152)
loaded kexts:
com.Cycling74.driver.Soundflower          1.5.2
com.iospirit.driver.rbiokithelper          1.19.2
com.AmbrosiaSW.AudioSupport          3
com.Logitech.Control Center.HID Driver          3.5.1
com.apple.driver.AppleBluetoothMultitouch          66.3
com.apple.filesystems.autofs          3.0
com.apple.driver.AppleUSBCDC          4.1.15
com.apple.driver.AppleHWSensor          1.9.4d0
com.apple.driver.AudioAUUC          1.59
com.apple.driver.AppleTyMCEDriver          1.0.2d2
com.apple.driver.AppleUpstreamUserClient          3.5.9
com.apple.driver.AppleMCCSControl          1.0.26
com.apple.driver.AppleHDA          2.1.3f7
com.apple.kext.ATIFramebuffer          7.1.2
com.apple.ATIRadeonX1000          7.0.0
com.apple.driver.SMCMotionSensor          3.0.1d2
com.apple.driver.AppleSMCLMU          2.0.1d2
com.apple.iokit.IOUserEthernet          1.0.0d1
com.apple.Dont_Steal_Mac_OS_X          7.0.0
com.apple.driver.AudioIPCDriver          1.2.1
com.apple.driver.AirPort.Atheros21          430.14.9
com.apple.driver.AppleMuxControl          3.0.16
com.apple.driver.AppleLPC          1.5.3
com.apple.driver.AppleBacklight          170.1.9
com.apple.driver.ACPI_SMC_PlatformPlugin          4.7.5d4
com.apple.AppleFSCompression.AppleFSCompressionTypeDataless          1.0.0d1
com.apple.AppleFSCompression.AppleFSCompressionTypeZlib          1.0.0d1
com.apple.BootCache          33
com.apple.driver.CSRHIDTransitionDriver          4.0.1f4
com.apple.driver.AppleIRController          312
com.apple.driver.AppleUSBTrackpad          225.2
com.apple.driver.AppleUSBTCKeyEventDriver          225.2
com.apple.driver.AppleUSBTCKeyboard          225.2
com.apple.driver.USBCameraFirmwareLoader          1.1.0
com.apple.iokit.SCSITaskUserClient          3.0.1
com.apple.iokit.IOAHCIBlockStorage          2.0.1
com.apple.driver.AppleEFINVRAM          1.5.0
com.apple.driver.AppleAHCIPort          2.2.0
com.apple.driver.AppleUSBHub          4.5.0
com.apple.iokit.AppleYukon2          3.2.2b1
com.apple.driver.AppleRTC          1.4
com.apple.driver.AppleIntelPIIXATA          2.5.1
com.apple.driver.AppleUSBEHCI          4.5.0
com.apple.driver.AppleUSBUHCI          4.4.5
com.apple.driver.AppleFWOHCI          4.8.9
com.apple.driver.AppleHPET          1.6
com.apple.driver.AppleSmartBatteryManager          161.0.0
com.apple.driver.AppleACPIButtons          1.4
com.apple.driver.AppleSMBIOS          1.7
com.apple.driver.AppleACPIEC          1.4
com.apple.driver.AppleAPIC          1.5
com.apple.driver.AppleIntelCPUPowerManagementClient          167.0.0
com.apple.nke.applicationfirewall          3.2.30
com.apple.security.quarantine          1
com.apple.driver.AppleIntelCPUPowerManagement          167.0.0
com.apple.driver.AppleMultitouchDriver          220.62.1
com.apple.driver.IOBluetoothHIDDriver          4.0.1f4
com.apple.kext.triggers          1.0
com.apple.driver.AppleAVBAudio          1.0.0d11
com.apple.driver.AppleHDAHardwareConfigDriver          2.1.3f7
com.apple.driver.DspFuncLib          2.1.3f7
com.apple.kext.ATI1600Controller          7.1.2
com.apple.kext.ATISupport          7.1.2
com.apple.driver.AppleHDAController          2.1.3f7
com.apple.iokit.IOHDAFamily          2.1.3f7
com.apple.iokit.IOFireWireIP          2.2.4
com.apple.iokit.IOSurface          80.0
com.apple.iokit.IOBluetoothSerialManager          4.0.1f4
com.apple.iokit.IOSerialFamily          10.0.5
com.apple.iokit.IOAVBFamily          1.0.0d22
com.apple.iokit.IOEthernetAVBController          1.0.0d5
com.apple.iokit.IOAudioFamily          1.8.3fc11
com.apple.kext.OSvKernDSPLib          1.3
com.apple.driver.ApplePolicyControl          3.0.16
com.apple.iokit.IO80211Family          411.1
com.apple.driver.AppleGraphicsControl          3.0.16
com.apple.driver.AppleSMBusPCI          1.0.10d0
com.apple.driver.AppleBacklightExpert          1.0.3
com.apple.iokit.IONDRVSupport          2.3.2
com.apple.iokit.IOGraphicsFamily          2.3.2
com.apple.driver.AppleSMC          3.1.1d8
com.apple.driver.IOPlatformPluginFamily          4.7.5d4
com.apple.driver.CSRUSBBluetoothHCIController          4.0.1f4
com.apple.driver.AppleUSBBluetoothHCIController          4.0.1f4
com.apple.iokit.IOBluetoothFamily          4.0.1f4
com.apple.driver.AppleUSBMergeNub          4.5.3
com.apple.driver.AppleFileSystemDriver          13
com.apple.iokit.IOUSBHIDDriver          4.4.5
com.apple.driver.AppleUSBComposite          3.9.0
com.apple.iokit.IOSCSIMultimediaCommandsDevice          3.0.1
com.apple.iokit.IOBDStorageFamily          1.6
com.apple.iokit.IODVDStorageFamily          1.7
com.apple.iokit.IOCDStorageFamily          1.7
com.apple.driver.XsanFilter          403
com.apple.iokit.IOATAPIProtocolTransport          3.0.0
com.apple.iokit.IOSCSIArchitectureModelFamily          3.0.1
com.apple.iokit.IOAHCIFamily          2.0.7
com.apple.iokit.IOUSBUserClient          4.5.3
com.apple.iokit.IONetworkingFamily          2.0
com.apple.driver.AppleEFIRuntime          1.5.0
com.apple.iokit.IOATAFamily          2.5.1
com.apple.iokit.IOUSBFamily          4.5.3
com.apple.iokit.IOFireWireFamily          4.4.5
com.apple.iokit.IOHIDFamily          1.7.1
com.apple.iokit.IOSMBusFamily          1.1
com.apple.security.sandbox          165.3
com.apple.kext.AppleMatch          1.0.0d1
com.apple.security.TMSafetyNet          7
com.apple.driver.DiskImages          331
com.apple.iokit.IOStorageFamily          1.7
com.apple.driver.AppleKeyStore          28.18
com.apple.driver.AppleACPIPlatform          1.4
com.apple.iokit.IOPCIFamily          2.6.7
com.apple.iokit.IOACPIFamily          1.4
Model: MacBookPro2,2, BootROM MBP22.00A5.B07, 2 processors, Intel Core 2 Duo, 2.33 GHz, 3 GB, SMC 1.12f5
Graphics: ATI Radeon X1600, ATY,RadeonX1600, PCIe, 256 MB
Memory Module: BANK 0/DIMM0, 2 GB, DDR2 SDRAM, 667 MHz, 0x2C00000000000000, 0x3136485453323536363448592D3636374531
Memory Module: BANK 1/DIMM1, 1 GB, DDR2 SDRAM, 667 MHz, 0xCE00000000000000, 0x4D342037305432393533435A332D43453620
AirPort: spairport_wireless_card_type_airport_extreme, Atheros 5416: 2.1.14.9
Bluetooth: Version 4.0.1f4, 2 service, 18 devices, 1 incoming serial ports
Network Service: Ethernet, Ethernet, en0
Serial ATA Device: WDC WD5000BEVT-22ZAT0, 500.11 GB
Parallel ATA Device: HL-DT-ST DVDRW GWA4080MA
USB Device: Built-in iSight, apple_vendor_id, 0x8501, 0xfd400000 / 2
USB Device: Bluetooth USB Host Controller, apple_vendor_id, 0x8205, 0x7d100000 / 2
USB Device: IR Receiver, apple_vendor_id, 0x8240, 0x5d200000 / 2
USB Device: hub_device, 0x0451  (Texas Instruments), 0x2046, 0x3d100000 / 2
USB Device: Apple Internal Keyboard / Trackpad, apple_vendor_id, 0x021a, 0x1d200000 / 2