"Could you please let me know, does this problem occur for all locations or certain locations when you use save or open dialogue?"
It happened on numerous locations, some that had many types of files, some that had nothing in the folder at all. So I'm guessing the location doesn't matter.
"what type of files do you have in the location where you want to save something or open ? (in the dialogue box for save or open what is your location? (e.g. is it desktop or a folder and what do you have in it?)"
Firefox saves on the desktop by default which has all kinds of files on it. Another browser I have saves in Admin/Downloads folder that has nothing in it. My video editor saves to a data HDD with all kinds of files in it. Notepad saves to the Admin directory.
All these have crashed one time or another.
"Does this problem occur for all applications or only one application like Microsoft Word?"
I would say all applications. This happened with browsers, video editors and even Notepad. I haven't seen it happen with MSWord yet but if it can happen with Notepad, why would MS Word be safe?
"What are your security software? like antivirus, firewall and please also let me know what are your start up programs. "
Avira antivirus and Comodo firewall. I tried uninstalling Comodo thinking it was the problem once but it wasn't. I have numerous startup programs but I already tried a clean boot and the open/save freeze problem still occured.
I read your guidelines and have already tried much of what you suggested. It is not because of disk hangups. If that were true, this would happen on another user account while the other user account is still running and it didn't.