It has just been happening 10-15 minutes of running fine then just happens. I noticed that it happens when going into full screen or when I run a full screen game or exit a full screen game. I've checked different cables to connect and I still get the problem with a DVI converter. I also tested it with the intergraded video card and there were no problems running a browser, game, and the display error didn't occur.
I have the up to date driver for the 6850 and I didn't decide to call rma / tech support yet.
It does appear the card is causing the problem. Before you decide it's bad, however, try this. Uninstall the driver package again in Control Panel/Programs. After the reboot, do another reboot to Safe Mode and run Driver Sweeper. Have it look for and remove any AMD, ATI, and Nvidia graphics driver remnants. Reboot and run CCleaner. Do the Clean and Registry both. Defrag. Reinstall the latest AMD driver package.
I've tried it and it sorta fixed the game play of 'Just Cause 2", except it still had this issue when the game was loading, but as soon as it got to the actual game it was fine. However when I opened up Windows media player to play a DVD as soon as it go to the menu screen, pic 1 happened again.
Your board should have an onboard DVI connector. Try the integrated video with your discrete card removed. See if the problem goes away. If it does, you probably have a bad card. On the otherhand, there's always the built-in north bridge in the CPU too. Trial and error.
It appears to be the card, doesn't it? If you could borrow someone else's card for a quick test, you'd be sure. But I think it's safe to assume the card is faulty. If you've done the CCleaner, Driver Sweeper, and new driver thing mentioned above, it doesn't appear to be software related. Have you tried a clean install of Windows 7?