CD to HDD transfer freezes system

Within the past few days, my system has started freezing up when trying to transfer files from a CD to my HDD. When I try to drag and drop the files, the hourglass will come on for a minute or two, "preparing to copy" will appear on the screen for a little while and then (checking in task manager):

- Both DVD Drive and "My Music" show "Not Responding".
- CPU is at between zero and 3% usage.
- Memory shows apx. 2.5GB free.

The only way I can get out is to choose end program in Task Manager. When I do, the desktop goes to a bare background screen for a minute before the desktop icons reload.

-- AVG detects no virus issues on HDD or CD files.
-- Advanced Windows Care shows no spyware/malware issues.
-- Disabled WIA (Windows Image Acquision) per Microsoft KB.
-- Changed out PSU as a precaution (Antec's PSU calculator reccomends apx. 370 watts; put in a new Antec 430W Trio).

Problem will repeat even in Safe Mode. What's especially strange is everything else (IE8, Outlook, PaintShopPro, etc.) seems to work fine; the issue only happens when I try to copy the contents of a CD filled with .mp3 files onto the HDD.

I've attached an Everest Report and a HD Tune Test Report. Although no errors are detected on the HDD, the strange benchmark scores (see chart) make me wonder.

If anyone has ideas on how to fix this it would be greatly appreciated. Thanks.