This is the 11th time I ask about it!!!!!!!

Did you uninstall your old drivers properly first. i.e uninstall them with a utility from the manufactures website, if not, go through "add/remove programs" then check through the registry for anything else related before you installed the new driver?

(Sorry if this had already been suggested but can't recall this problem. That's what i'd do. Just trying to help).

Noo I did anything that could be done with the software and my computer is brand new I didnt have to uninstall anything first.

Damn... just a few things to try if you can.

Is there any chance you could put your card in a freinds PC just to check it's not your computer?

Also is there a youtube video (or similar) that shows better draw distance than you are currently getting using the same hardware?

Can you take a screen shot of the game you are playing so we can see exactly what you mean?

When a problem like this happens, it`s difficult to remain calm and objective because everything you try seems to have no effect, I know, I`ve been there myself.
So, take a deep breath, calm down and start at the logical beginning by
going into BIOS and setting everything to default factory values.
Then reinstall all the motherboard/soundcard drivers (after uninstalling as appropriate).
Next use Windows Update to update your OS fully and then update DirectX.
Finally uninstall your current video drivers and then sweep them clean with Driversweeper (in Safe Mode) and instal the latest from the ATI site.
This may not cure the problem, but it will give everyone a solid base to start from.

AAAAAARRRRRGGGGHHHH!!!!!!!!!
Do`nt forget to set a RESTORE POINT before using Driver Sweeper!

@ wonderingwhatis: I know and this has been the soloution to this type of problem in the past, my point is to get the OP to set his system to a stable, baseline configuration with all known good settings so we can fault find from there.

omarco; Please let us know the rest of your configuration, particularly the monitor resoloution.

and you are sure that it isn't just the new objects coming into view?

To save graphic resources most games dont display objects in the distance (like trees in oblivion). They also have a point where when you get close enough to them the details of the object increases (so that resources aren't wasted on producing details that you would hardly be able to see from that distance anyways). Are you sure this isn't what you are encountering?

Personally i would have to either borrow a card from someone or get yours tested. Its teh only way to know for sure.
I had a similar Polygon issue before but that was down to over tweaking of the graphics settings on my part. Now im assuming either something isnt set right or there is something inside the card not working right. So unless you have been playing with the very advanced settings of your card i would think it the latter.

Mactronix

Your card is only 128 bit. You are not going to get a high end graphics experience from a mid to low end video card. What you describe sounds normal. Consider stepping up to a HD4850 or better.

edit: typos

At 1280*1024 that card is plenty powerful enough.

frps in most games at 1280*1024 is 50 frps (average)
But with crysis its 40 to 45 frps.
and its really annoying me that I am running games at good fraps and have this stupid problem -.-

+1 MAC

Try another card in the computer, or try the card in a friend computer. (+1 if your friend have an ATI card .. he already have the driver installed)

Not sure about ATI cards but is there a aspect setting in drivers like 16:9 or something like that you might need to change to match the monitor. Not sure if that would cause your problem or not just throwing it out there.