Memory errors or Bad memory causes the stuck in infinite loop error. Memory can POST and still be bad. The infinite loop can happen intermittently whilst playing CPU intensive games but less often when playing pure 3D games - for example my system ran 3D Mark 2001se overnight in a loop with memory that wouldnt get to POST in another board.
Yet this memory would cause system freezes whilst running Prime 95 and intermittently and less frequently during normal use of the system. The error device driver got stuck in an infinite loop suggests a problem with the device itself or the device driver programming would suggest in this case device driver incorrectly programmed due to errors in the memory.
The problem can also happen with good memory that is running out of sync with the CPU under XP but is fine under Windows 98 - but it is always a memory related problem despite the error message pointing to the graphics card see this post for more info at http://tinyurl.com/dky5.
In my case I was running the cpu at 133fsb and the memory at 133fsb the memory was TWINMOS 512MB PC2700 best way to test your system instead of waiting for it to happen again is to download Prime 95. See www.mersenne.org/freesoft.htm.
[Update] - I have since found that having APIC mode enabled in the BIOS can cause the system to infinite loop more often then it should however having BAD RAM can always cause infinite loop regardless of BIOS settings but I believe disabling APIC mode is the first step in resolving this issue.
As per ME293078
, this issue can occur when the display driver is caught in an infinite loop, typically waiting for the video hardware to become idle. This usually indicates a problem with the video hardware or with the display driver not being able to program the hardware correctly.
This event occurred together with event 1003 (source: system, type: error). I reseated the video card, set the Virtual memory to 0 and then reboot, delete the pagefile.sys file and then set the virtual memory back to normal. This resolved the problem.
Install the latest video driver updates from the hardware manufacturer. This issue is usually caused by installing a driver from Windows Update.