I did a new install of win xp (32bit). I installed the ATI Radeon HD 4770 graphics cards and loaded the drivers, catalyst, etc. that came on the disk with the HW. The catalyst panel was able to run and I could control the cards parameters. I went to the ATI website and downloaded the latest drivers and installed this set of drivers and software. Catalyst was not able to run --- got a message like "won't work with the graphics engine". I uninstalled all and reloaded the software from the disk. Got the same message when trying to launch Catalyst. I believe I uninstalled all including the "chipset(software)". I have not been able to find any download specifically called "chipset(software)" --- sounds like firmware to me. Any help/ideas greatly appreciated.
Ok, here's what happened. Before I started to follow Korogui's advice, I decided to try installing the drivers from the board manufacture's website, vs ATI's website. The set of drivers from the manufactures had fewer "apps" in the download. After uninstalling the existing drivers and installing the set from the manufacture it worked. But the advise about having so residual code hanging around is right on!