Lesson worth taking away: if you are going to mod your game, you are going to have to know what mods you have installed and when a big patch is imminent you have to either disable auto-patching in steam, or know what mods you're running and be willing to do some diligence.
In this case, as soon as the new patch went live, the New Vegas Nexus boards lit up with folks reporting this same problem.
Here's the fix, and crossposted from this same post at OO.
Well-reported problem, well-reported fix.
http://www.newvegasnexus.com/downloads/file.php?id=42729What is the problem?: The problem is that we get a creepy ghoul sound, screen fades, we can't move, and it repeats. This fixes that error...
Ok, so my other version of this mod didn't work. I've tried everything to disable that script so I finally decided to just disable what it does.
NOW UPDATED AS OF 7/8/2011
New Version now with NO SIDE EFFECTS
Install Instructions:
Put both .esps into FalloutNV/Data folder, then in FOMM move one the the .esps right below FalloutNV.esm and another at the very bottom of the loadorder list. That should fix the problem. Load a clean save with no mods, then whatever save you want. (it seemed to work for me that way). There is no particular order (which one is up and which one is down) because they are both the same.