As the title says, im able to play Rage perfectly fine. I can run it no problem but it tends to freeze on me when my cpu hits 100%. I know this because i have a g15 gaming keyboard and it tells me this is happening.

Anyone have any ideas of how to fix this?

I7 @ 3.07
Radeon 6950
12 gig ram
1000 PSU
Sabertooth Mobo

What i7 CPU do you have? Is it dual core, quad, quad with HT?
If its a dual core you may want to try adding a line to the launch option in stream for Rage: +set com_skipIntroVideo 1 +jobs_numThreads 0 +vt_maxPPF 8

Its a quad core for sure

Box says i7-950 LGA 1366
4 cores/ 8 threads

No way rage should be maxing out all 4 cores 8 threads.
Check to see if anything else is running in the background.
maybe a virus scan while your playing.

Alright ill see if it works with all my apps closed and just rage playing.

4 cores/8 threads means that it's a quad with HT. I've the same and am not having this problem, so here's my best guess.

There was a thread a while back where turning off hyperthreading in the BIOS helped out some people; seemed as though there was a conflict or other funny with the AMD driver. Might be worth a try.