Windows 7 - Indexing Service lockup

I am trying to modify my indexing service as I beilve that it is causing a increasing size with windows backup.

But the reason I post is for the following reason.

I am running
Windows 7 64 bit
Outlook 2010 32bit
icloud control panel

When I open indexing service the outlook listing does not have the normal icon.
But that might not be related.

When I try and modify the index I get the hour glass and it does not stop.

I restored the index and reset the search and I can modify the index.
However when I open outlook and it is reindexed I can not modify the index.

I think the icloud control panel might be causing a problem.

Does anyone have this problem?
Does anyone know what file type I should exclude so I can use my indexing service?
I tried excluding the pst type but that is not the problem.