Posting this here...knowledge is wealth.

I tried to start different packages simultaneously and started receiving dead-lock errors.

I finally found a solution to the dead lock issue and my original post after stumbling across this KB:http://support.microsoft.com/kb/2699720

After staggering the start of the packages I am not longer receiving weird protection errors or dead-lock errors. I wish someone would tell me how they are related but I am delighted I've found something! We are planning to install SP1 quick, fast and an a hurry within the next week...