Weird Freezeup and Graphic Distortion on Reboot

I would appreciate if any of the large of number of expert techies in this forum can help me solve this weird problem I am having when I reboot with XP:

I have been dealing with this issue for the last month or so. When I reboot XP I get this weird screen flickering when the logon screen comes up. Once I logon I get to the desktop and then theres a complete freeze up followed by the whole screen going black and this is then followed up by the whole screen displaying blue and white diagonal lines flashing; definitely a graphical glitch. Sometimes the desktop will reappear and will eventually unfreeze and I can use the computer normally. Other times, the graphical distortion is displayed until the monitor goes into sleep mode and never recovers. I then boot up in safemode and reinstall the latest nvidia display drivers for my 7950 GX2. Which solves the problem for a few boot ups, but it then reappears.

Also, sometimes when I am gaming, the screen will flicker on and off occasionally and sometimes even hang. The temperatures of the CPU and GPU are within normal limits (E6600: Idle 47 Load 55) (7950 GX2 Idle 67 Load 75). Nothing is overclocked.

I'm thinking the graphics card may be on the fritz, but I don't understand how it seems to happen at bootup. That makes me think that it has something to do with the software. No error reports show up in Xp's Event Logger.

Other Hardware Info:

Motherboard: Asus P5N32 SLI Deluxe SE
Ram: 2GB Corsair XMS2 (4-4-4-12)
Soundcard: Audigy 2 (Onboard Sound Disabled in BIOS)
Power Supply: OCZ 700W GameXStream

Any help would be greatly appreciated! Thanks