Okay guys, I have a late 2009, 27" iMac: i5 2.66GHz, 16GB 1333MHz RAM, 1TB Seagate HDD (was replaced by AppleCare late october from a WD Black), ATI Radeon HD 4850 512 MB, running Mac OS X Lion 10.7.4 (11E53). I just thought I'd give this information so you know what I'm working with. Over the last month, I've actually been having some major issues with the OS. For instance, trying to change the name of a folder would not work unless the computer was restarted. My computer would not wake from sleep, powering it off would turn off the computer, but powering back on would take multiple attempts, just to name a few things. I decided I would boot into the recovery partition and fix permissions to see if that would solve my problems and in turn, it actually did. I went error free for nearly a week up until right now. I was watching Steve Nash highlights on YouTube (I know that's unimportant, but he's purple & gold now, so I just had to ) and about 2 minutes in to the video, my computer experienced it's first ever kernel panic. I snapped this shot real quickly and then turned it off for a bit, turned it back on and did not experience a kernel panic on boot. I have Apple Care and I'm pretty experienced with computers to say the least, but I'm not sure why this occurred especially with a pretty new HDD inside, given that kernel panics normally occur from outside sources other than the Mac. If anyone has input, it would be greatly appreciated and thank you for baring through this long post of mine! PS, heres the photo... Even though I know it's really not that important because it's standard for a kernel panic, but I'll include it nonetheless.