We had a similar issue with a customer's site and we had to downrev back to an earlier patch level; however this is of concern to us as the earlier version has issues due to its inability to handle paths greater than 255 characters. We have had a call logged with EMC support but they were not too helpful and the downrev was done as the customer had all his users unable to work and things were not looking too great!

My guess is there is a bug here if we have both seen a similar issues... If you have not done so already I would suggest you log this to EMC.

We had something simular happen if you remove dxspy.sys the system acts normally again. did you ever get it working?