"Display driver AMD driver stopped responding and has recovered"

I'm a noob with PC building and troubleshooting/maintenance knowledge so please bear with me.
I just built my first PC recently and my screen started to freeze and flickers to black constantly with the warning message "Display driver AMD driver stopped responding and has recovered" on Windows 7
This seems to happen when I:
-Browsing the Internet via Internet Explorer
-Viewing, scrolling, and magnifying images
-Computer gets back from "sleep"

I'm using a XFX Radeon 5770 and Windows 7 64-bit Home Premium
I'm also using an old but perfectly functional Sony SDM-HS73 17" LCD monitor and using a VGA to DVI adaptor to the GPU
Drivers has been updated via AMD Catalyst Software Suite 11.3
Windows 7 has been updated to the latest SP1
Using 1280x1024 resolution @ 60Hz for Desktop and Game
No issues with gaming on highest setting so far. The GPU, CPU and motherboard temperatures are fine. Everything is stock, nothing is overclocked

System Spec:
CPU: AMD Phenom II X4 955 Black Edition 3.2GHz AM3 125W
GPU: XFX Radeon HD 5770 1GB 128-bit GDDR5 PCI Express 2.1 x16 [HD-577A-ZNFC]
RAM: CORSAIR XMS3 4GB (2x2GB) DDR3 1600 9-9-9-24 1.65V [CMX4GX3M2A1600C9]
HDD: Western Digital Caviar Black 640GB 7200 RPM SATA 3.0 GB/s 32MB Cache [WD6401AALS]
OS: Microsoft Windows 7 Home Premium 64-bit
PSU: Antec EarthWatts 650W

How can I fix this problem? Do I have a faulty video card and should contact XFX?
Please do provide your solutions/advice be noob friendly to understand and follow.
Thanks in advance!
5 answers Last reply
More about display driver driver stopped responding recovered
  1. Have you downloaded and installed the latest drivers from AMD? Have you overclocked your video card in any way? If you just installed the drivers on the cd that came with your video card they are almost certainly out of date. You need to check AMD's site and get the newest ones available....
  2. Yes, I forgot to mention the Drivers has been updated via AMD Catalyst Software Suite 11.3
    Everything is stock, nothing is overclocked
    The problem still persists...
  3. Download HWmonitor, and Furmark. Run furmark for about 15 minutes and report the video card temp from both Furmark and HWmonitor. Try downgrading the drivers, I know people always say to make sure that they are updated, but I have found that some updated drivers cuase problems with things...

    Do you remember when this started?
  4. Try doing a manual install of the drivers...
  5. I have done as instructed and the GPU temperature is around 40 °C at idle, and rises up to around 65 °C under load. Which is pretty normal IMO

    The problem started as soon as I started up the machine for its first couple hours, happened with or without the drivers. I tried formatting and reinstalling Windows, same results. I believe this may be an issue with Windows 7. I've updated Windows but no luck fixing the issue.
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