Not good.
Last night i ended up trying to reinstall, i formatted the system disk/ C: partition and applied a fresh reinstall of Win7 64bit (same disc as before) went through all the setup settings, created initial user then "Windows 7 logging in for the first time etc" screen comes up and then bam! BSOD nvlddmkm.sys comes up!!
How annoying and really was not expecting it. After a couple more attempts i managed to log in ok. I tried a few work arounds as detailed at
http://www.nvlddmkm.com/ tried varying levels of drivers 180 to 190 (always driver cleaning in between) basically machine stays up for about 10mins but it can be anything as simple as opening a browser or 5mins of say HL2 and then the dreaded BSOD rears its head.
The fact that it BSOD before i had even launched Windows 7 for the first time from setup after reinstall is the really concerning part. Makes me think the graphics card itself is playing up. I can try putting in the wifes slightly older gts8800 card in when i get back see what happens.
I have memory checked the RAM in windows 7 and that came up clear. CPU sits stock clocked (had not even looked at OClocking it since i purchased it) sits around 40c according to BIOS. I also tried a flashing a couple of different revisions of bios, seems to make no difference to machine.
Sleepyhead you said about underclocking, i read some people had done this, but im not sure if to try that or not, my GTX260 came factory OClocked - so i not touched it at all. I will probably not either depending on what happens tonight with graphic card swap out, if my old 8800gts works fine on my Win7 rig then maybe looking at duff gcard so would rather RMA it back as it came (only purchased 3 months ago)
Running out of things to try, i will give the graphic card swap out a try tonight and see what happens. Wish me luck