It's compatible, don't worry about the test, just use the included CyberLink Hi-Def Suite software and you'll be fine, it said the same thing about my HD2600 equipped laptop when I added my LG HD-DVD/BR drive.
Yes you can, the 4200 will handle 1080P bluray quite well
http://www.tomshardware.com/reviews/avivo-purevideo-clearvideo,2408.html
The Blu ray compatability test that came with the LG driver I bought says that the 4200's driver is not compatible, when I down load the latest 4200 driver from ATI, it does not change, I am using Windows 7 is there something I'm not doing right?
It's compatible, don't worry about the test, just use the included CyberLink Hi-Def Suite software and you'll be fine, it said the same thing about my HD2600 equipped laptop when I added my LG HD-DVD/BR drive.