Well Jimmy, I've just spent hours doing as you suggested (I have a lot of extensions) all to no avail. It still does happens. I have narrowed it down a little as to what causes this behaviour.
If I edit the any part of the forms using the preset manager it seems to work OK. But this means if I want to change anything on a form I have to first delete it and then make my changes using the preset manager, then add the form again to the page.
If I add a form and then try to edit it using the properties panel, it happens. It starts to copy the entire contents of my C drive into the CSSFormBuilder folder and Dreamweaver stops responding. The other wierd thing is it doesn't do it every single time. I might get one or two good edits in before it happens.