First of all, I had an issue with my 8800 GTS and the latest nVidia released drivers (175.19? something). Had lockups, and major ****. I decided to grab the 177.79 that are currently in beta (I think).
I have no more problem with WoW, but I have lockups in the opening of Alone in the Dark and major FPS problems with Crysis (medium config).
I'm on dual screen and I've noticed that, when I try to change the resolution in the config menu of the game, my 2nd screen will blink a few times and switch between Analog and Digital mode and finally my main screen will remain black and I need to restart my computer.
Also, from times to times, without any explanation, I'm losing sound while watching video streaming on Youtube or MyspaceTV.
I can't believe that all these errors are related to drivers? They are all up to date, and I don't have any BSOD..
I had a similar problem, after installing GRiD. I would get flickering, and crashing. I reformatted(had to, anyway), and all is well now. Gave me a chance to try out vlite. Worst-case scenario, just reformat.