Here is the solution. When you install windows 7 it will automatically configure the VGA driver adapter (totally useless) ATI does not have a driver to support windows & on this display adapter; but here is a trick that will get you up and running again.
1. open the control panel
2.click on appearance and personalization
3. click on display
4. Click on screen resolution
5 click on the advanced settings tab
6. click on the adapter tab
7. Click on properties
8. click on drivers tab
9 . click update driver
10 Click search automatically
11. Windows 7 will find and install a driver for your ATI mobility xpress 200
12 restart computer when prompted
13 back in business
In short there is no driver support for older DX9 or older ATI cards for Win 7. You can either downgrade to XP or Vista for legacy support but that is all since your options are limited beyond trying vista drivers that might not even work.
i have upgraded today (9-sep-2010) my laptop (acer 5102 - turion 64x2 tl 50 - ati radeon xpress 200) from win xp to windows 7 home premium 32bit and the driver for the ati card has been downloaded and installed automatically. And the pc is OK!