I tried the archive and install. It went through the entire process and then hung again on reboot.
I then tried the single user and no luck. When I did another permissions check/repair, it said there were a bunch of permissions that had changed and could not be repaired (user/bin/....)
So....I did a complete erase of the hard drive, reformatting, clean install of Leopard, and a restore from Time Machine. All is very stable now as I'll see how it goes for the next week or so.
I'm guessing there was either a flaw in the HD which caused these errors or a "bug" of some sort. I started having problems when I was installing Adobe 8 Acrobat reader and it gave me all sorts of errors.
Anyway, it seems to be fine for now but I'm still quite curious...