BleepingComputer.com: Power Options Properties Causes Complete Freeze, Windows XP Pro SP3

I have Sager np8660 that used to have Vista but reformatted and installed XP pro SP2 and upgraded to SP3. Everything works fine except for one problem.
When I change most settings in Power Options Properties (Desktop/Properties/Screen Saver tab/Power button), my laptop freezes randomly soon after or during boot in regular boot and in any safe mode.

To define "most settings":

in Power Schemes tab - all and any change other than "Never" in "Turn off monitor", "Turn off hard disks", and "System Standby" for both "Plugged in" and "Running on batteries" will do it.

in Alarms tab - Setting any action other than "No action" for both seems to do it.

in Advanced tab - Setting anything other than "Do nothing" on both/either "When I close the lid of my portable computer:" and "When I press the sleep button on computer:" will do it.

in Hibernate tab - Enabling hibernation will do it.

As long as all settings are set to do basically nothing, my laptop is freeze-free, but I want to use these settings.
If anyone has any ideas for fixing this issue, PLEASE HELP!!!

-Fooddha