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I don't use Dynamic Link in CS5 so did not pay much attention, but you might want to do a forum search... I think I have read of other problems
What happens if you export files and then start Encore by itself?
Ya thanks, there is a way to start Encore and
"import" your work project from Adobe Premiere Pro CS5, without CS5 running.
But I honestly thought once in Encore, PPro would/or SHOULD just "shut-down" its memory/cpu usage,..., but I guess that is not the case as easily as it might be. -hence "dynamically linked -as in lets ALL buy MORE CPU's and Memory -yes, Bill, loves us.
I will try just Encore alone next time.
A BSOD is most often caused by a hardware issue. I would totally rule those out, prior to trying to troubleshoot software.
Things to look at and probably in about this order:
1.) heat build up
This ARTICLE by Harm Millaard, will give you some useful tools to pursue the hardware end first, and then help with some of the software troubleshooting.
When you installed the software, was an antivirus running?