Finally found a solution on the Corsair forums. Seems that many people are having issues runnin Dominators 8500C5 sticks in Dual channel mode or at 1066MHz. They say tht the memory controllers on the Phenoms have issues.
Solution was to downgrade the speed to 800MHz and check for stability. Did that and bumped the NB voltage. OCed my CPU to 3.1GHz with 1.4V Vcore. Runin stable for 2days without problems. Passed 3hrs of OCCT and 3 hrs of prime 95. But system still wont post with modules in Dual channel mode.