Bluescreen error after moving the lid

I have an HP pavilion. I can't move the lid when its on! If I do, after a while it brings up a blue screen error and restarts. It says it's because of preventing a damage. What's the damage and what's the cure?

It may be helpful to say it has another problem when moving the lid, it repeatedly turn off and on the screen.)

This is the text:

A problem has been detected and windows has been shut down to prevent damage to your computer BUGCODE_USB_DRIVER If this is the first time you've seen this stop error screen (which is not), restart your computer. If this is a new installations (which is not), ask your blah blah blah... Technical information: *** stop: 0x000000FE (...)

Link to dump: http://www.mediafire.com/download/3g8kiumv71j1cqf/083114-18267-01.dmp

I think you have damaged one of lid wires, as Big Chris suggested in comment.

I don't agree thats graphics card error, because you have BUGCODE_USB_DRIVER there.

I guess this is webcam wiring problem. Typicaly laptop webcams (as well as touchpads, keyboards) have USB interfaces and they are connected internally to USB controllers in laptops.

You should replace that faulty wiring.

If there is separate wire for webcam - you can remove it to workaround problem, but I guess there is one big integrated wiring for all stuff in the lid and you will have to replace it.