Well it turns out that the radio version I was using was not the issue because the phone became unresponsive this morning when I tried to wake it up. To be specific, it does allow me to swipe to unlock but painfully in slow motion.
So that rules at the radio...which leaves me with its either the ROM/Kernel or some rogue app.
So this morning I wiped all user data in recovery and reinstalled CM7#14 but this time I did not log on to my google account during setup and have not installed any apps. So far no issues, but the true test is trying to wake the phone up tomorrow in the morning. If there are no issues, then that solves it (ITS A FREAKING APP).
If it is a rogue app that has been haunting me these past couple of weeks then who has the best way to identify which one is the offender? Why would a rogue app only affect me using AOSP roms and not Sense?
My suspicions are with..(Locale, Beautiful Widgets, ADW EX, Swype, CardioTrainer, Handcent) but I guess process of elimination is what its going to take.
Thanks to all for the help and recommendations.