I've been in this thread, and its sister thread:
http://discussions.apple.com/thread.jspa?threadID=2383288&start=0&tstart=0
for a long time. I've read every post in both, but now I'm leaving them behind as my problem is being left behind.
In my case, the problem was definitely hardware, but also, it was absolutely only triggered when using OS versions newer than 10.6.2 (i.e. .3, .4, or .5).
About a week before my AppleCare ran out, I called Apple. After discussing the symptoms (I also mentioned these two forum threads), and everything I had already tried to resolve the display freezes (see my many previous posts), they asked if I could bring it in. I said no problem (there's an Apple Store about 25 minutes away).
The Apple Store had the machine for a week and could not reproduce the problem. So, I picked it up and took it home and began reinstalling software. I started with an erase-install from a 10.6.3 retail DVD. While still booted from the DVD, and selecting which optional items to install, the display froze - exact same symptoms. This ruled out anything to do with my software or accounts. I called Apple and they said bring it back in.
They kept it for another week. I got a call that they think it might be a RAM problem. They saw a freeze or two (all week) during RAM tests, but with those tests disabled, no freeze. This, of course, is the same RAM that runs for months under 10.6.2 without any freezes. It's not RAM (more below). My guess is that since the RAM tests are very long, the display freeze is simply more likely to occur during that time. Based on all the symptoms and testing to date, the west coast AppleCare guy believed it was a logic board or video card problem and wanted the store to replace those parts, but the store said no - try replacing the RAM.
So I picked up the machine again. Using appropriate grounding, I took the RAM out - two sticks of 2GB from Crucial - which had been in there for years. I put the original Apple-supplied 1GB stick back in and proceeded to erase-install again. Started with the 10.6.3 retail DVD, migrated my accounts from backup, then Combo-updated to 10.6.5, plus all available Apple patches. I got two more display freezes within a couple hours of use. This was on completely different, Apple-supplied RAM. I called the store and they wanted me to bring it back in. I called the AppleCare guy and he said enough-is-enough. The AppleCare guy offered to replace a
significant amount of hardware to help resolve the issue (sorry, I cannot define "significant"). AppleCare really paid off. Bottom line is, for me, it was a hardware problem (not RAM), but a problem that was only revealed with OS versions newer than 10.6.2. Best of luck to everyone still suffering with this issue. If you still have active AppleCare - be sure to use it.