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So last night i noticed the drivers the crashing on my mining rig which is running is a pair of 6870s. Now anytime i try to do anything on the second card(run a miner on it, try to get video from it) the computer BSODs saying one of the ati driver files failed.

Does this mean that the card is dead?

I am dreadfully sorry to report that Yes. That would indicate that the hardware has become damaged and disfunctional :(
That happened to me with one of my 6870, Turns out i snapped off a resistor, Resolderd it and it works.

I also had a simmilar incident where my old 6990 had One of its Two GPUs blowout, Anytime i "loaded" the second GPU, Bam, BSoD

damn :( That really sucks. I havent taken a look at the card itself yet, so ill have to do that tonight and see if theres anything visibly wrong with it.

Give it the old "sniff test" to help figure out Where it blew out, Burn electrontics have a very distinct smell, And i can tell you this, There is No Freaking Way, i would've known that my resistor had snapped off had the area not smelt like melted solder

Did this. no smell at all. also checked thoroughly for anything that might have burned or come off or something. But everything looks ok.

uninstall the drivers, and reinstall them... if that does not work, try "repairing windows"... or if you did some funky adjustments to settings... undo them. You are telling it to do something it can not do, or you used a setting that was at the limit on a cold day, and over the limit on a hot day.

If you see a screen, and you can play a video, or do HTML5 with it... then the card is not dead, it is a driver failure. I assume, due to corruption of one of the drivers.

Unless your PSU just is not delivering juice when it opens the flood-gates. (But if it ran before, and no smells, then chances are slim that it is actually dead. Slim, not impossible. But no-one even attempted to help, just all assume it is dead. Easy to assume, hard to accept as a first-reply, with so little information, or any troubleshooting.)

Ideally put it in a different computer for testing. Cards can work in 2d modes and video modes but still be damaged enough to crash at higher loads (eg gaming, stress testing, mining).

Exactly what happend to my 6990's second GPU core, It worked... But the second you give it load BSoD

Sometimes cards can limp along on just a few of the phases of the VRMs and appear to work normally when not under load. It's fairly well known that phases can fail (usually power transistor failures from overtemp on dual GPU cards) but the GPU will still 'sort of work'. As soon as you give it load it cant supply the correct amperage and power stability to the GPU so it will crash or lock up.

http://www.geeks3d.com/20100504/tutorial-graphics-cards-voltage-regulator-modules-vrm-explained/

you can also try to reflow the card if its already useless. I did this with a 5970 which had also one dead GPU and it still running again till 6 month now..

Turned out it was still under warranty for another month! Ive sent it in for RMA, so we will see what comes of that.