Replicable crash since installing Mountain Lion

I seem to be having a near fatal crash since upgrading my Late 2008 Macbook Pro to Mountain Lion. When I pause and unpause a Youtube video everything freezes and the logout text screen (the verbose mode text that you see when the system is logging out) is overlayed onto the Safari 6.0 browser and then the computer restarts itself! This has never occured in my entire life of owning an Apple computer (since the early 1980s) and now it happens about 50% of the time since installing Mountain Lion.
Initially I did an upgrade from Lion as I have upgrade all of my Macs since the beginning of OS X, but after the first crash, I did a completely clean install (wiped and reformatted the hardrvie which is less than one year old) and reinstalled Mountain Lion from a USB key backup that I made. Problem still occurs.
Any help is greatly appreciated as this is quite worrysome! Below is the error log I received upon restart:
Interval Since Last Panic Report:  296234 sec
Panics Since Last Report:          2
Anonymous UUID:                    C295ED49-47E9-445E-8FDD-01E5D91D7D5F
Fri Aug  3 19:33:04 2012
panic(cpu 1 caller 0xffffff800fcb7b95): Kernel trap at 0xffffff8034b18d30, type 14=page fault, registers:
CR0: 0x0000000080010033, CR2: 0xffffff8034b18d30, CR3: 0x0000000067e5c000, CR4: 0x0000000000000660
RAX: 0xffffff80344d7d00, RBX: 0xffffff8021f49000, RCX: 0xffffff801025cba0, RDX: 0xffffff8021f49008
RSP: 0xffffff80f87bbb28, RBP: 0xffffff80f87bbb40, RSI: 0x000000000000ffff, RDI: 0xffffff80353f6a00
R8:  0x00000000000001b1, R9:  0x0000000000000000, R10: 0x0000000114903000, R11: 0x0000000000000200
R12: 0xffffff7f90e3ee38, R13: 0x0000000000000000, R14: 0xffffff8021f49000, R15: 0xffffff8021f49000
RFL: 0x0000000000010286, RIP: 0xffffff8034b18d30, CS:  0x0000000000000008, SS:  0x0000000000000010
Fault CR2: 0xffffff8034b18d30, Error code: 0x0000000000000011, Fault CPU: 0x1 Kernel NX fault
Backtrace (CPU 1), Frame : Return Address
0xffffff80f87bb7c0 : 0xffffff800fc1d5f6
0xffffff80f87bb830 : 0xffffff800fcb7b95
0xffffff80f87bba00 : 0xffffff800fcce4ad
0xffffff80f87bba20 : 0xffffff8034b18d30
0xffffff80f87bbb40 : 0xffffff7f90e3595f
0xffffff80f87bbb70 : 0xffffff7f90e3592c
0xffffff80f87bbb90 : 0xffffff7f90e3a60b
0xffffff80f87bbbc0 : 0xffffff8010065cb3
0xffffff80f87bbc20 : 0xffffff80100638ef
0xffffff80f87bbd70 : 0xffffff800fc981a1
0xffffff80f87bbe80 : 0xffffff800fc20abd
0xffffff80f87bbeb0 : 0xffffff800fc10448
0xffffff80f87bbf00 : 0xffffff800fc195fb
0xffffff80f87bbf70 : 0xffffff800fca5ad6
0xffffff80f87bbfb0 : 0xffffff800fcced13
      Kernel Extensions in backtrace:
         com.apple.iokit.IOSurface(86.0.2)[7199A934-B665-33C1-A15A-F56A811A1C2B]@0xfffff f7f90e34000->0xffffff7f90e45fff
BSD process name corresponding to current thread: PluginProcess
Boot args: -v
Mac OS version:
12A269
Kernel version:
Darwin Kernel Version 12.0.0: Sun Jun 24 23:00:16 PDT 2012; root:xnu-2050.7.9~1/RELEASE_X86_64
Kernel UUID: 8D5F8EF3-9D12-384B-8070-EF2A49C45D24
Kernel slide:     0x000000000fa00000
Kernel text base: 0xffffff800fc00000
System model name: MacBookPro5,1 (Mac-F42D86C8)
System uptime in nanoseconds: 12022965843033
last loaded kext at 11011941387810: com.apple.driver.AppleUSBCDC          4.1.21 (addr 0xffffff7f91ed2000, size 16384)
last unloaded kext at 11113807109093: com.apple.driver.AppleUSBCDC          4.1.21 (addr 0xffffff7f91ed2000, size 12288)
loaded kexts:
com.paceap.kext.pacesupport.snowleopard          5.8
com.Cycling74.driver.Soundflower          1.5.1
com.apple.driver.AppleHWSensor          1.9.5d0
com.apple.filesystems.autofs          3.0
com.apple.iokit.IOBluetoothSerialManager          4.0.9f8
com.apple.driver.AGPM          100.12.69
com.apple.driver.AppleMikeyHIDDriver          122
com.apple.iokit.BroadcomBluetoothHCIControllerUSBTransport          4.0.9f8
com.apple.driver.AudioAUUC          1.60
com.apple.driver.AppleMikeyDriver          2.3.0f2
com.apple.iokit.IOUserEthernet          1.0.0d1
com.apple.driver.AppleHDA          2.3.0f2
com.apple.Dont_Steal_Mac_OS_X          7.0.0
com.apple.driver.AppleMuxControl          3.2.6
com.apple.driver.ApplePolicyControl          3.2.6
com.apple.driver.ACPI_SMC_PlatformPlugin          1.0.0
com.apple.driver.AppleSMCLMU          2.0.2d0
com.apple.driver.AppleUpstreamUserClient          3.5.10
com.apple.driver.AppleMCCSControl          1.0.33
com.apple.driver.AppleLPC          1.6.0
com.apple.GeForce          8.0.0
com.apple.driver.SMCMotionSensor          3.0.2d6
com.apple.driver.AppleUSBTCButtons          235.4
com.apple.driver.AppleUSBTCKeyboard          235.4
com.apple.driver.AppleIRController          320.15
com.apple.iokit.SCSITaskUserClient          3.5.1
com.apple.AppleFSCompression.AppleFSCompressionTypeDataless          1.0.0d1
com.apple.AppleFSCompression.AppleFSCompressionTypeZlib          1.0.0d1
com.apple.BootCache          34
com.apple.driver.XsanFilter          404
com.apple.iokit.IOAHCIBlockStorage          2.2.0
com.apple.driver.AppleUSBOHCI          5.1.5
com.apple.driver.AppleFWOHCI          4.9.5
com.apple.driver.AirPort.Brcm4331          600.15.20
com.apple.nvenet          2.0.19
com.apple.driver.AppleUSBHub          5.1.6
com.apple.driver.AppleAHCIPort          2.4.0
com.apple.driver.AppleEFINVRAM          1.6.1
com.apple.driver.AppleUSBEHCI          5.1.5
com.apple.driver.AppleSmartBatteryManager          161.0.0
com.apple.driver.AppleRTC          1.5
com.apple.driver.AppleHPET          1.7
com.apple.driver.AppleACPIButtons          1.6
com.apple.driver.AppleSMBIOS          1.9
com.apple.driver.AppleACPIEC          1.6
com.apple.driver.AppleAPIC          1.6
com.apple.driver.AppleIntelCPUPowerManagementClient          196.0.0
com.apple.nke.applicationfirewall          4.0.39
com.apple.security.quarantine          2
com.apple.driver.AppleIntelCPUPowerManagement          196.0.0
com.apple.kext.triggers          1.0
com.apple.iokit.IOSerialFamily          10.0.6
com.apple.iokit.AppleBluetoothHCIControllerUSBTransport          4.0.9f8
com.apple.iokit.IOFireWireIP          2.2.5
com.apple.iokit.IOSurface          86.0.2
com.apple.driver.DspFuncLib          2.3.0f2
com.apple.iokit.IOAudioFamily          1.8.9fc9
com.apple.kext.OSvKernDSPLib          1.6
com.apple.iokit.IOBluetoothFamily          4.0.9f8
com.apple.driver.AppleHDAController          2.3.0f2
com.apple.iokit.IOHDAFamily          2.3.0f2
com.apple.driver.AppleBacklightExpert          1.0.4
com.apple.driver.AppleGraphicsControl          3.2.6
com.apple.driver.IOPlatformPluginLegacy          1.0.0
com.apple.driver.AppleSMBusPCI          1.0.10d0
com.apple.driver.AppleSMBusController          1.0.10d0
com.apple.driver.IOPlatformPluginFamily          5.2.0d16
com.apple.nvidia.nv50hal          8.0.0
com.apple.NVDAResman          8.0.0
com.apple.iokit.IONDRVSupport          2.3.4
com.apple.iokit.IOGraphicsFamily          2.3.4
com.apple.driver.AppleSMC          3.1.3d11
com.apple.driver.AppleUSBMultitouch          235.7
com.apple.iokit.IOUSBHIDDriver          5.0.0
com.apple.driver.AppleUSBMergeNub          5.1.5
com.apple.driver.AppleUSBComposite          5.0.0
com.apple.iokit.IOSCSIMultimediaCommandsDevice          3.5.1
com.apple.iokit.IOBDStorageFamily          1.7
com.apple.iokit.IODVDStorageFamily          1.7.1
com.apple.iokit.IOCDStorageFamily          1.7.1
com.apple.iokit.IOAHCISerialATAPI          2.5.0
com.apple.iokit.IOSCSIArchitectureModelFamily          3.5.1
com.apple.iokit.IOFireWireFamily          4.5.5
com.apple.iokit.IO80211Family          500.15
com.apple.iokit.IONetworkingFamily          3.0
com.apple.iokit.IOUSBUserClient          5.0.0
com.apple.iokit.IOAHCIFamily          2.2.0
com.apple.iokit.IOUSBFamily          5.1.6
com.apple.driver.NVSMU          2.2.9
com.apple.driver.AppleEFIRuntime          1.6.1
com.apple.iokit.IOHIDFamily          1.8.0
com.apple.iokit.IOSMBusFamily          1.1
com.apple.security.sandbox          220
com.apple.kext.AppleMatch          1.0.0d1
com.apple.security.TMSafetyNet          7
com.apple.driver.DiskImages          344
com.apple.iokit.IOStorageFamily          1.8
com.apple.driver.AppleKeyStore          28.18
com.apple.driver.AppleACPIPlatform          1.6
com.apple.iokit.IOPCIFamily          2.7
com.apple.iokit.IOACPIFamily          1.4
com.apple.kec.corecrypto          1.0
Model: MacBookPro5,1, BootROM MBP51.007E.B06, 2 processors, Intel Core 2 Duo, 2.8 GHz, 8 GB, SMC 1.33f8
Graphics: NVIDIA GeForce 9600M GT, NVIDIA GeForce 9600M GT, PCIe, 512 MB
Graphics: NVIDIA GeForce 9400M, NVIDIA GeForce 9400M, PCI, 256 MB
Memory Module: BANK 0/DIMM0, 4 GB, DDR3, 1067 MHz, 0x857F, 0x483634353155363446373036364700000000
Memory Module: BANK 0/DIMM1, 4 GB, DDR3, 1067 MHz, 0x857F, 0x483634353155363446373036364700000000
AirPort: spairport_wireless_card_type_airport_extreme (0x14E4, 0x8D), Broadcom BCM43xx 1.0 (5.106.98.81.20)
Bluetooth: Version 4.0.9f8 10405, 2 service, 18 devices, 1 incoming serial ports
Network Service: AirPort, AirPort, en1
Serial ATA Device: ST9500420AS, 500.11 GB
Serial ATA Device: MATSHITADVD-R   UJ-868
USB Device: Built-in iSight, apple_vendor_id, 0x8507, 0x24400000 / 2
USB Device: Apple Internal Keyboard / Trackpad, apple_vendor_id, 0x0236, 0x04600000 / 3
USB Device: IR Receiver, apple_vendor_id, 0x8242, 0x04500000 / 2
USB Device: BRCM2046 Hub, 0x0a5c  (Broadcom Corp.), 0x4500, 0x06100000 / 2
USB Device: Bluetooth USB Host Controller, apple_vendor_id, 0x8213, 0x06110000 / 3

Library is a folder, not a file. There're more than one Library folders, one at the root and one for each user in your Mac. All of them are hidden, this is why you can't find them. But you can see their contents using
Finder Menu > Go > Go to Folder
And then type:
~/Library
for your Library Folder
-or-
/Library
for the root Library folder.

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