NOOOO! Don't install Catalyst!....
Nevermind....
(It WAY over-complicates what SHOULD BE a simple driver installation/update situation. It's the Big Thing that I DON'T like about ATI: THEIR SOFTWARE!)
Okay. I'm betting that you DO NOT have the latest ATI drivers installed, despite what you thinkyou did! (I TOLD YOU ATI software was trouble!)
Let's see, shall we?:
0) RIGHT-click open desktop space, and choose "Properies" from the popup to get to the Display Properties window.
1) Select the "Settings" tab, and then the "Advanced" button.
2) An ATI-specific "<monitor name> and <ATI GA model> Properties" window should now display. Select the "Adapter" tab.
What does it say in the "Adapter Type" pane?
3) "X"-out of all those windows.
4) Let's check to see what WINDOWS thinks is your display, shall we?
Start -> RIGHT-click "My Computer" and select "Properties" from the popup to bring up the System Properties window.
5) Select the "Hardware" tab, then the "Device Manager" button.
6) Click the plus sign ("+") in front of "Display adapters" to expand that hardware set.
Let me know the info on ALL of the lines that show up there.
7) "X"-out of all those windows.
MOST of the time when you (re)install ATI SW - even if you "do it right" - you'll end up with Windows "Default" GA support, which is ... No Good....