You know,I forgot to include the most important step. when I reinstalled graphic card driver I did not go to the ATI web site for the latest dwnld I used the supplied cd I got in box when purchased. I had always used website before. Cmpbllsjc ,what about you? Or anyone. 
I finally got my problems fixed I am happy to say. I was reading a thread that is about 10 pages long on the PMDG forum at Avsim with people experiencing similar problems to what I was having.
On a whim I stopped my local Microcenter computer store on Sat and bought a Sound Blaster X-FI XtremeGamer sound card. It was only $100 so I though I would give it a try, plus if it didn't solve my problems I could always return it.
What a difference it has made.
Prior to the install I would sometimes getting wierd static sounds when ATC would speak, plus the graphics problem I posted a pic of above that would sometimes occur on flights with the LDS 767 after switching views many times or accessing the FSX menus during flight.
I am happy to say that as a test after installing the card I flew from KDFW to Imaginsim KATL, KATL to the stock KJFK, KJFK to FSDT KFLL, then KFLL to the stock KLAX. During the flights I switched views many times, accessed the FSX menu, paused the sim, even minimized it a few times, and was unable to crash the sim or get the graphics or sound problems.
On top of that, I have gained a little more performance. Prior I would get about 16 to 18 FPS going into the stock KJFX or KLAX with all FSX settings maxed except 60% AI and no bloom or lens flare and the FSX weather setting of Building Storms. Now flying into the same two hubs I am getting no less than 20 FPS but more like 25 FPS consistant. A pretty big improvement. So I am guessing that the onboard SoundMAx audio that came with my mobo was causing me not only sound problems but performance problems as well.
I am really happy and its almost like getting a new sim. I just wish that i had done this a year ago instead of suffering with those occasional problems. It wasn't that bad prior, but was a pain in the butt when I would be 30 min from arrival after flying a few hours to have the VC textures disappear or the sim lock up after switching views.
Then only thing I have yet to try is upgrading drivers from the nVidia 169.21's to newer ones. In the past, any driver newer than the 169's would cause me even more sound problems, but visual performance would be better. The sound problems were to bad to keep newer drivers so I would always go back to the old ones. I am guessing I will try new ones this week, however the sim is working so well that I am scared to try, although I can always go back if problems occcur again.
Edit: Forgot to add that I haven't gotten those autogen spikes again either so that is another added bonus. A lot of people had suggested that those were from only having 2gb of RAM and a 512 video card, but it appears that it was the sound card problem that was contributing the whole time to my problems.
