Exodus, I'm nowhere near a desktop or ATI software so can't provide effective instructions. Sounds like you need to drop your resolution and/or vertical refresh frequency.
The software should have auto-detected your monitor and capabilities, but you may have a leftover resolution/refresh helper utility forcing incompatible settings.
BTW, uninstalling the devices may not have picked up everything associated with the old card. Use add/remove programs first. Still no guarantee, but it'll pick up non-driver utilities that like to hang around and cause problems.
Safe boot to VGA again, check your taskbar, installed software, etc. Worst case you can force settings blind from the keyboard but it's easier to start where you can see.
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There are a vast number of people who are uninformed and heavily propagandized, but fundamentally decent. The propaganda that inundates them is effective when unchallenged, but much of it goes only skin deep. If they can be brought to raise questions and apply their decent instincts and basic intelligence, many people quickly escape the confines of the doctrinal system and are willing to do something to help others who are really suffering and oppressed." -Manufacturing Consent: Noam Chomsky and the Media, p. 195
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