Asus EAS HD4850 and Dual Monitor = Issues... (Help!)

Hi Guys,

Haven't posted on this forum in a while, but I know I can always get good advice here.

My current system is as such:

E5200 (2.5ghz)
4GB (2 x 2GB PC2 6400 G.Skill)
Asus EAS HD4850 512mb (discontinued at new egg)
Gigabyte mAtx motherboard... (forget which one)
P180 case and earth watts 380w power supply.

I use Vista Business 64 with Aero enabled.

I have recently installed the 8.6 catalyst drivers, as I heard these are the best for the 4 series... however I could not find the hotfix for the 8.6 which I read was pretty important...

I know right off the bat some might say my system is under-powered, this is not the case, as it has the same issues when I try the 500w PSU from my other computer.

I'm running two monitors... my main screen is a 20" Acer at 1680 x 1050. My secondary is an older 16" (I think) but runs at 1280 x 1024. It has the old blue style plug, so I'm using an adapter so it can plug into my 4850.

The problem I'm running into... is twofold...

1. While playing a windowed game on screen 1, and full screen video (anime, movies etc) on screen 2... the second screen will sometimes flicker black. Also when switching the video from windowed to full screen the windows for it will randomly blink in and out (like just turn black and then show up again etc.

2. Sometimes... my computer will just lock up and restart... (usually after prolonged use)

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Here are my thoughts...

1. Card may be over heating... But I use temp monitors and haven't seen it go over 65c which I didn't think was bad for those cards... I've read all over that they're made to run a little hot... so.... ?

2. The combination of game + video + aero on two monitors may be too much for one card?

3. 2 monitors 2 different resolutions = bad?

4. Need better drivers?

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So... what does anyone think of this?
Has anyone else experienced similar issues?
What types of things would you recommend trying?
Does anyone know of better drivers for the 4850 than the 8.6 catalysts?