I wouldn't worry about an upgrade if you have a desktop; lots of available graphics cards for upgrade. The built-in graphics for this inexpensive (paid $289 for it at Wal Mart in 2010) laptop, it seems to be an issue.
Before my first post, I used the Windows 7 System - Hardware - Graphics - Driver to check that my drivers were up-to-date. It said they were. But after weeks of dead ends, I decided to check the ATI/Support site. There a small download would check for the best driver for my graphics. Surprise - a different driver was indicated as the best for my setup. I had trouble getting that new driver to load, and gave up for a time--too busy with other things. Will get back to it shortly and report.