The live cd will only tell you whether or not the issue relates to hardware, based on your response it would seem that the issue is not hardware so you might be wasting your time with that. I mentioned it case it was of any use to you.
The apps that are running are they responsive? What about leaving task-manager open the night before? What might be better is to use Process Explorer (advanced task-manger)
http://technet.microsoft.com/en-us/sysinternals/bb896653
Im going to pre guess that your CPU is not maxed out, because even if it was the apps would still execute, abiet a bit slowly. Also I'm going to assume that its not a virus as they are not even close to as common as people think, it is spyware and trojans that are all the range these days.
Then perhaps a way ward app?
This is a real trial and error approach, but with no other indications as to what might be wrong it seems like the only option.
I would first using auto-runs (link below) disable any 3rd party apps that I don't need. Be very carful with this, only disable the apps you know, disable the wrong thing like userinit.exe and you will be in a worse state! Disable the anti-virus and any other such low level systems (3rd party firewalls etc). Disable 3rd party services (use services.msc) . Restart. Leave command prompt (cmd.exe) and process explorer open.
Next morning if the machine is not locked up, then I would hazard a guess that it was one of the disabled systems that was causing an issue. Have a think about them, what apps could it be, what ones are new.Unistall\Reinstall the ones that you are happy to do so. Enable everything except what you might think it is and see if that fixes the issue the next morning,....... as I said trial and error.
On the other hand if there is still and issue, use process explorer to kill\restart explorer.exe, use command prompt to try and launch a command, choose both a command prompt executable like "ping.exe" and a gui app like "notepad.exe".
Instead of solving the answer this will give you more information about the problem, hopefully you will either discover the root cause of the issue or will at least have enough information to do an informed google, as problems of any nature are rarely unique, and the answer has already been found.
If all else fails backup your files\application data\select registry keys\apps
Wipe and then reinstall windows, reinstall all your apps, putting the appdata info\reg keys back. Im fairly sure Ive had to do this a few times.
Auto-Runs
http://technet.microsoft.com/en-us/sysinternals/bb963902