Ok here is what is happening. I have a clean install of windows XP (SP3), using IE8 8.0.6001.18702 and Safety Minder version 2.2.0.40
http://www.youtube.com/watch?v=t2bZbnqQtq4 going to that video or probably any other causes my system to hang.
If I disable the safety minder BHO add on for IE it works perfectly, if i enable it, it hangs.