After trying many different fixes I decided just to save myself the headache and do a fresh install of Windows 7, but it still freezes every time I try to shutdown or go to sleep. And yes, all USB devices are disconnected.
I have an i5 2320 3GHZ, 8GB 1333mhz ddr3 ram, 1TB HDD, gigabyte geforce 660 GPU and this power supply: http://www.newegg.ca/Product/Product.aspx?Item=N82E1681...
(it has served me well with no problems for over a year now...)
I tried removing my video card, and each stick of ram individually. And also flashing cmos and none of that helped. Unfortunately I don't have a spare power supply kicking around. Its worth noting that when booted up on the recovery partition of my hard drive I CAN restart.
Any help greatly appreciated!