your PSU is 5Volts(exact?, not 4,65v and not 5,5v) at last 800mA? majority Pi problema can be originated by a poor PSU... try another or start a thinking of warranty of your Pi...
Low interference and no ripples in PSU is an important factor for rock solid good ones with a respected and solid brand like (mine here is an Sansung cellphone charges is a very good one.)
I had version 0.8.0 with the update listed above this posted in the forum (that fixes menu tiles, etc)
The last time I was able to 'successfully' boot that card, i got a kbd error, upon reboot I got no apparent response. Is there a safer way to reboot a seemingly frozen pi than to pull the usb sonnection?
kbd error means card corruption, did you have overclock on your pi?(I think yes, if so return to stock 700Mhz and try again or replace/change your SD card, try a new one class 4 or better!)
Please keep it in mind, AFTER YOU got a kbd error, in your card the boot got corrupted, so YOU NEED!! reflash the card, because it already have corrupted some files and it will keep corrupted, so reformat and reflash and retry.(it not get any diferent results(always the same Kbd error, until you reformat and reflash the card!)