Dang.. my own ISP dropped me for about an hour.
Did all that and still some problem going on.
Well I'm on a Windows 2003 Server and ACL permissions seem fine. The TESTS from control panel all say okay for perms.
I did a restore of the site from yesterday and still something wrong. Every time PHP launches it sucks way too much resources and takes a long time to launch the site.
Analyze of the MySQL files did not show any issues either.
Will look at dropping the database and doing a restore and see if that fixes it. Really weird.