I also have an ATI card and am running windows 7, however I don't have any of the ATI driver software installed. Try uninstalling the Catylist software bundle from your system and doing a reboot, Windows 7 will then search for and install a semi generic drivre for your card. This may sound like bs but my computer is running 50x better with the generic driver then it did with the actual ATI drivers.
The generic driver that Windows 7 installs is version 8.632.1.2000
Problem with Radeon X1300/X1550 Series
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I also have an ATI card and am running windows 7, however I don't have any of the ATI driver software installed. Try uninstalling the Catylist software bundle from your system and doing a reboot, Windows 7 will then search for and install a semi generic drivre for your card. This may sound like bs but my computer is running 50x better with the generic driver then it did with the actual ATI drivers.
The generic driver that Windows 7 installs is version 8.632.1.2000