I have found one thing that seems to work... I moved all the files inside my downloads/sharing folder into a new folder so that that my downloads/sharing folder is empty... now it doesnt seem to freeze or stall. The problem with this is now i now can't share with anyone... which isn't very good.

Also as soon as i put the files back into the folder it freezes again

I also changed the Java to 1.5 and it seems to work ok...

*** wondering if this helps to solve the mysterious problem***