Oh grinch2171. It's been a heckofa past 7 days. Thanks for replying. I couldn't really determine this issue being due to a network infrastructure. It just seemed crazy that any setting pertaining to networking (WINS,DNS,Firewall,etc) would cause the CPU to max out. I attempted to fix the problem with the upgraded firmware. I finally got sonicwall on chat (i called at least a hundred times and waited 20+ minutes, emails went days before an automated respond). We do have a support package but I was needing help in the meantime. I was able to get good help from the online chat (only got disconnected twice). It didn't take long. The support tech said it's probably a security protocol causing the issue. Go to Network->Zones and disable all security measure for LAN and WAN.
Now, I lucked up and tracked down a user who was uploading to youtube and determined that to be the cause of of the CPU to jump to 100%. I could then simply re-enable each security protocol one by one and I got the user to start an upload to test. When I disabled all security the user could upload and the CPU was good. When I enabled Anti-Spyware the user's upload caused the CPU to go to 100%.
We disabled scanning outgoing files for Anti-spyware and our problems are fixed.
I'm not sure if this is youtube specific or browser specific as user's that were using an FTP client to upload files did not cause the sonicwall to hit 100%.
I think just know if CPU utilization increases that much that's it's not necessarily a bottleneck or collision. I ran several packet monitoring programs, but they didn't show anything that a router could not handle. However, there was no way to know that the spyware scanning system would use so much CPU.
IMO, I think the upgraded firmware should have fixed this. Not sure why the Anti-spyware scan can't optimally scan outgoing files.