This happens quite a lot to me in the harbour. When i resurrect in the tavern it will take some time loading the players etc (which is expected) but then the game will start to periodically freeze and then be ok again, the time between freezes then begins to shorten until the game finally locks and I get the "not responding".
However, if I immediatley exit the tavern after resurrecting and then go back in, its fine.
I'm using the following and running DDO:U in admin mode:
Vista 64
AMD 4600+
Nvidia 8800 GTX
4 Gb ram.
In the past I've deleted the settings file but obviously that doesn't cure it forever.
I'm guessing this is a memory leak.
I usually run the game in windowed mode. I'll try it in full screen and report if same occurrs.