UPDATE... We took the server down and shipped it off to IBM. I will update once the test results come back.

It will freeze when the SQL Agent is running (which has a massive amount of SQL server jobs)

I did all that you mentioned above. Profiled, etc... Nothing that says it DB.

I think it is hardware. We are sending it to IBM today.

That was it. I have OPTION (MAXDOP 4) after each query and changed it to OPTION (MAXDOP 1) and the lines went away. Thanks!