Keep getting this kernel panic

Solution 1:

You need to find out, if the kernel panic is caused by hardware failure or software/driver related conflicts!

The best way is always to get an idea of what might causing the problem in the first place, therefore you need to gather information and closely observe your system, processes, behavior etc.. in order to pinpoint back to the problem. Secondly, try to recreate the problem, just to make sure your suspicion is correct. The last step is finding the solution to your problem.

This line of information suggest, that MicrosoftKeyboard kext (kernel extension) is causing the panic!!

com.microsoft.driver.MicrosoftKeyboard  7.1 (addr 0x1ac2000, size 0x40960) - last unloaded 839800501350443

You can try the following:
Download a linux live cd and boot into it, with no external devices attached, like keyboard, mouse, hdd etc.. if you don't encounter any problems when trying to recreate your problem / or in due time, boot back in your os x partition (with no external devices attached). - (This step only makes sense, if you have no idea of what might be the problem whatsoever!)

Kill all system processes related to "MicrosoftKeyboard" and relocate the com.microsoft.driver.MicrosoftKeyboard.kext which can be found here System/Library/Extensions to another dir, so it will not be loaded when you reboot your OS.

That is my best guess!! Please report back for results.

Edit: You are welcome Chris and hopefully it resolves the kernel panic issue!!