Okay I've tried SO many solutions! :l It happens most when I'm playing Minecraft or starting up the computer, at random my monitor will go blank, it will sometimes recover. "AMD Radeon graphics driver has crashed and successfully recovered!" (Let's just hope I can type out this message without a crash :l)
I've tried updating my drivers from the AMD website, Idk if there's somewhere else I can update it or something. I've reinstalled my Minecraft, I've cleaned out my WHOLE .minecraft, performed a disk check, and so much more. I tried system recovery but that won't work unless I "system restore". I'm not gonna clean out my whole hard drive for another fail attempt at fixing this! Please help?
The only thing I can recommend at the moment is a fresh install of Windows.
I had my own issues with AMD's drivers for the Radeon HD 5850. But it seems the issue was not as bad as your since the drivers would only crash when playing games. Specifically when playing Skyrim even when not modded. I decided to upgrade from Catalyst 11.something to version 13.4 and others as well. Basically I ran into a lot of problems with AMD's drivers such as not recognizing the Radeon HD 5850 at all or installing the drivers, but the drivers didn't actually install. Some games could be played, but others could not. Videos the I had personally encoded on my PC could not be played. A lot of issues.
It took close to 4 hours to resolve including editing my Windows Registry; something that is generally considered very dangerous to do. In the end I got Catalyst 13.4 installed, but it didn't stop Skyrim from crash every now and then.
My suggestion is to completely reinstall Windows after backing up important data.