Powercolor HD3650 Blue screen error

I received this error message while doing something in my computer. I tried to install the latest driver for this GPU model from their website but still encounter this error message once in a while in a random time differences. I'm currently using the following computer spec.

OS : XP Home Edition
RAM: 2GB PC2 8400 running in 6400 only
CPU: E7400 stock speed

Below is the exact message:

The Problems seem to be caused by the following file: ati2dvag
The device driver got stuck in an infinite loop. This usually indicates problem
with the device itself or with the device driver programming hardware incorrectly.

Hope you can help me out on this.
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More about powercolor hd3650 blue screen error
  1. There is also another pertinent error every time I restart my computer and that is the Catalyst Command line Center. I believe this is where settings for video are being changed.
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