LMAO I fixed it all by myself because I'm a ******* genius!!!
Care to tell us why? I'm having the same problem but on my ATI Radeon HD 5670.
Here's what I did:
Steam told me I had outdated drivers and I installed new drivers they provided me. I got BSOD, my PC resetted and everything was fine. However, I have slightly less better performance on games and other things (thank God I have a good processor).
Now I can't open my Catalyst Control Center in Basic view because it says it doesn't support my current video card. I tried rolling back, selecting driver in a list but it doesn't work. My PC didn't came with a recovery Windows 7 install disc.. so I have no idea what to do.