BSOD - 0x119 Stop Code

I have recently run into this exact same issue.

Intel E6600 (stock 2.4GHz)
Win7 Home Prem 64bit
4GB DDR2-800 OCZ
Gigabyte GA-EP35-DS3P
X-Fi sound card

For me, it all started when I installed this evga nvidia GTX260 1792MB.

Previously had a 512MB 9800GT and NEVER ran into this until the new(er) card.

The funny thing is this happens when the system is primarily idle. Whenever the card is not idle (like in games), it NEVER crashes. I have tried various drivers (beta and final) from nvidia 296.xx to most recent 306.97.

Seems this is still an ongoing issue with Win7 that is OS related after doing some searches online. Apparently it has something to do with FenceID checks... i am a tech (builds and repairs) but not a programmer... so the FenceID stuff is a bit beyond my scope of knowledge.

Edit 12 Dec 2012: After plenty of digging and checking around, it seems this is a combination of factors.
1) It never happened with XP because XP does not use WDDM, therefore never accessed that part of the video card.
2) In Win7/8, WDDM is talking to the video card, but because the video card is starting to go bad, it is giving the 0x119 BSOD.

I even recently installed a SSD and did a clean install of Win7 to it and the problem continues.

So typically this issue is a bad video card. Sadly I do not have the money to replace it right now (to get the same performance, I would need to spend around $150 on newegg).