I will post your sig rig details to save time for others...=o)
msi p35 neo-fr2
Use a process of elimination with your individual hardware.
I would advize default settings on all hardware and see if you can swap vga to test. (eg declock cpu)
Also test with one stick of ram if you can.
Also remove and reseat ram and VGA
Your assumption that it is a driver issue may not be correct.
I have seen your symptoms when the 3d hardware (GPU/Vram) has decided it cant take the load anymore...
Like you say it does sound driver related, so I have ot ask the easy question, are you using the most current driver from either nvidia or ati? Your Sig is not there so I cant see what video card you have, but I would go to either nvidia or ati and not the site of the manufacturer such as asus or evga for example. If that dosent work you may just have a defective card. Was there a time when this card "did" work? Or does it work correctly in another machine?