Ghost 12 still freezes on the other computer when backup starts. I think the hard drive actually shuts down. Normally the hard drive makes noise and the lights flash when the backup starts. Various messages also appear including enumerating the stack whatever that means. Now the hard drive gets and stays quiet and the only message is creating recovery point. Not just ghost 12 but winxp itself freezes so hard the only way to get out of it is by pressing the power button. This happens using a usb drive, firewire drive, and to another partition on the hard drive. All programs are shut down and a virus scan didn't find anything. I think ghost 12 is having a problem with another program but since everything is shut down I don't know where to look. No error messages appear in the log. Of course ghost 10 worked fine with all programs running. 

Here's some screenshots of the error messages from event viewer.

Just found a product that works fabulously, Farstone's Drive Clone 3 Pro. It does what ghost 12 does without a few of the bells and whistles. It costs only $25. I installed it on the problem computer and it made a backup first time straight through. This obviously shows the problem was with ghost 12 and not my computer. I wondered why I could be the only one with this problem. Now I think there had to be others who just returned the product and didn't post about it. Keep an eye out for a patch. Knowing Symantec though, they'll probably issue ghost 13 and charge for it.