They are looking at the error but no new drivers yet. I am not 100% sure it is the TCnear firewire audio drivers. When I unplug the Firewire device and replug it back in it will dump all the audio devices on the spot including the internal ones. This is the log from that event and then the manual restart of coreaudio. The first part with all the callback references, is generated by opening up the audio section of system preferences before unplugging the firewire port:
7/6/11 5:49:11.801 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for input device 112
7/6/11 5:49:11.801 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for input device 108
7/6/11 5:49:11.802 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 101
7/6/11 5:49:11.803 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 92
7/6/11 5:49:11.803 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 88
7/6/11 5:49:11.803 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for input device 76
7/6/11 5:49:11.804 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 76
7/6/11 5:49:11.804 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for input device 37
7/6/11 5:49:11.804 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 37
7/6/11 5:49:11.805 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for input device 33
7/6/11 5:49:11.805 PM [0x0-0xad0ad].com.apple.systempreferences: Adding callbacks for output device 33
7/6/11 5:50:39.000 PM kernel: TCNear: bus reset
7/6/11 5:50:39.000 PM kernel: TCNear:

rocessing RestartRequest
7/6/11 5:50:40.000 PM kernel: TCNear::RestartStreaming (sr 44100, clksrc 12, opmode 1)
7/6/11 5:50:40.000 PM kernel: TCNear: Resync (0)
7/6/11 5:50:41.000 PM kernel: TCNear: bus reset
7/6/11 5:50:41.000 PM kernel: TCNear:

rocessing RestartRequest
7/6/11 5:50:42.000 PM kernel: TCNear::RestartStreaming (sr 44100, clksrc 12, opmode 1)
7/6/11 5:50:42.000 PM kernel: TCNear: Resync (0)
7/6/11 5:50:51.000 PM kernel: TCNearAudio: TC Electronic KonnektLive guid:1660408c00207 connected.
7/6/11 5:50:51.000 PM kernel: TCNear:

rocessing RestartRequest
7/6/11 5:50:52.000 PM kernel: TCNear::RestartStreaming (sr 44100, clksrc 12, opmode 1)
7/6/11 5:50:52.000 PM kernel: TCNear: Resync (0)
7/6/11 5:50:53.000 PM kernel: TCNear: bus reset
7/6/11 5:50:53.000 PM kernel: TCNear:

rocessing RestartRequest
7/6/11 5:50:54.000 PM kernel: TCNear::RestartStreaming (sr 44100, clksrc 12, opmode 1)
7/6/11 5:50:54.000 PM kernel: TCNear: Resync (0)
7/6/11 5:51:03.000 PM kernel: IOHIDSystem: postEvent LLEventQueue overflow.
By the way, this is the log below of what I enter in to terminal to restart the core audio to get the list of audio devices back in system preferences:
7/6/11 5:59:43.621 PM sudo: root : TTY=unknown ; PWD=/ ; USER=root ; COMMAND=/bin/kill -9 5077
7/6/11 5:59:43.632 PM com.apple.launchd: (com.apple.audio.coreaudiod[5077]) Exited: Killed: 9
ediT:
I removed all traces of the tcnear drivers and set the sound to internal and all the problems dissipated. I then did a clean install of the tcnear driver and all the problems of coreaudio shutting down returned immediately. Uninstalled again and back to normal. pretty clear that the tcnear drivers need some work. I may jump to the M-Audio 2626 and try their beta Lion drivers.