Hi everyone,
I have a mid-2011 iMac i7 3.4 with the 6970 card on OS X Lion v10.7.5, and was experiencing freezes left and right -- the computer would lock up and become unresponsive, but I could still move the cursor around. This would mostly happen after the computer had already been asleep once, and I was editing RAW photographs, but it could happen within 10 minutes of a reboot, too. It would happen every day, and the only cure was a reboot.
After finding this thread, I resigned myself to packing the thing up and taking it back to Apple to get the 6970 replaced, but what made the whole thing stange was that this never happened before Apple upgraded the video drivers back in 10.7.3. I found it so strange that this was a hardware error -- it worked perfectly before that!
Well, when Mavericks came out last week, I figured what did I have to lose? I backed up my files and upgraded the machine from 10.7.5 to 10.9, and guess what? The computer hasn't locked up since! It use to crash every single day. Now, nothing!
I've tried everything: editing tons of RAW images, putting the computer to sleep again and again, and playing videos, but the thing has worked smooth as butter -- it's astounding.
Will this fix everyone's problems? I have no idea. I'm perpetually in fear that the freeze will happen again, and that I've just been lucky. That said, my suggestion:
If you can, try upgrading to Mavericks and see if this solves your problem. Before doing so, please please please back up your files. Test your iMac for a week, and report back. Maybe this was a software issue after all?
tl;dr: upgraded to Mavericks, freezing gone