Whomever tol you to buy based on that alone isn't worthy of your attention.
There are driver issues with both companies, but they are minor, and nothing to concern yourself with (or else you're stuck with Intel, which may have less driver issues, but that's easy when you can't play anything :twisted: ).
To get an idea of the balance of issues (and they are small like little unsinhy water or something) look at this site which has the best visual comparo IMO;
http://www.digit-life.com/articles2/digest3d/0506/itogi-video-gallery-bugs.html
Looks pretty even to me, or even the reverse of what you heard.
I havent heard alot of people who had driver problems but I have heard a few things from ATI. I do want a Geforce 7600 but the Radoen X1600 looks nice too.
Well straight up IMO most often the GF7600 in the price range of the X1600 you're considering is usually the better buy. The GF7600GT is better than the X1600XT, and the GF7600GS is a better than the X1600Pro in most cases. The X1600XT versus the GF7600GS is alot closer though.
There are some app/game specific benefits to the X1600 series, but I'd usually favour the GF7600 for most games.