Hi
The first thing to understand is that S3 sleep mode won't work properly unless the system is 100% stable so I expect that is where your problem lies. You will need to make sure your system is perfect at stock speeds and then try S3 sleep mode.
I never have any issues with this set-up while it's running. Even during graphic intensive games that run for hours. I've never had a restart or a BSOD. After reading about the Windows 7 Sleep function, I've figured out it's not 100% reliable and that it works better on laptops.
I've always had problems with Windows and the Sleep function, even back with XP. I've done hours worth of runs with memtest and IntelBurnTest - never having a problem whatsoever.
Do you see anything wrong with my BIOS overclock settings? They seem pretty stable to me, but I am new to OC'ing with the i7. I am not 100% certain that my voltages are correct and there could be some obscure setting that I need to enable/disable.
But thanks for the help.