Red X under flag symbol in Windows 7

I'm pretty sure I have found the cause of this problem. WD Anywhere Backup.

 

This is a backup program that comes with a Western Digital external hard drives. After uninstalling this program the red flag dissapeared - not to mention that my system is much more stable now. 

 

So if anyone is running Norton 360 alongside WD Anywhere Backup and is having issues - get rid of of WD Anywhere Backup! Thanks for everyones help on this too.