Well looks like I sorted it out. But let me fill you in on everything
After replacing the PSU and further testing with another 2 PSUs I now switched back to the original LCs Arkangel as it was obvious it was not the PSU (was unable to get the Corsair to test though). After the PSU fiasco I opted for motherboard replacement and got the GA-X58A-UD7 rev. 1 and akasa X2 CPU cooler in hopes of decreasing CPU temps while I'm at it.
As the CPU temps did go down a degree or 2 the original problem still remained. I would still get the nvidia driver failure. At this point I also have my original GTX 470 back "on" the system (can't really say in the system as the entire rig is sitting on my desk right now
).
At this point I was at a total loss but figured I should try this anyway. I removed half of my RAM even despite the memtest saying everything was fine. And right now I'm in my fourth day of Ultima Online, Starcraft II and 3D Mark tests without a single crash. Previously UOL alone would produce a crash within 5 minutes.
I did note that RAM is now significantly cooler (do not know the exact degrees, only the touch of my finger sensors
)
I also noticed the default settings for RAM in BIOS are 8 8 8 20 while RAM is clocked at 9 9 9 24 (this goes for both motherboards!). However there is no difference if I change those values manually. I'll mess with the ram a bit more and see if I can figure something out.
On a side note my roommate bought the exact same configuration (ram, mobo, proc.) at the exact same time I did and he has 0 problems with his rig.