Well we seemed to get problem narrowed down to the picky memory controller on the CPU (965 BE 125w).
I sent it back to AMD under warranty (retail boxed) and they were pretty fast at sending me a new one. They only wanted the CPU but sent me back a new retail pack with heatsink/fan (not that I used the original). Pretty nice of them.
Popped that new baby in with all 4 ram chips (could only use 2 before) and she fired right up without a hitch. Will have to see if I can get it back up to 4ghz with all the ram.
Anyway, now I gotta do some checking to see if it is worth upgrading my H50 cooler to the new H70.