Direct x not showing correct picture

Hi guys,
I have searched everywhere on the web but can't find any information on how to fix my problem.

When I play games that use direct x 9 the picture is as shown in pictures 1,2 and 3 below. But using Direct X 11 the picture is fine (as shown in picture 4)



1)

2)

3)


4)


Any help or links to information that might help would be gratefully appreciated.


Things I've tried:

Re-installing direct x

Updated Catalyst control center

Tried different games

Installed temporary OS and games (Worked perfectly)



Here's some of the Information produced by dxdiag:

DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: 96 DPI (100 percent)
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7601.17514 32bit Unicode


--------------------
DirectX Debug Levels
--------------------
Direct3D: 0/4 (retail)
DirectDraw: 0/4 (retail)
DirectInput: 0/5 (retail)
DirectMusic: 0/5 (retail)
DirectPlay: 0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow: 0/6 (retail)

---------------
Display Devices
---------------
Card name: ATI Radeon HD 5700 Series
Manufacturer: Advanced Micro Devices, Inc.
Chip type: ATI display adapter (0x68B8)
DAC type: Internal DAC(400MHz)
Native Mode: 1920 x 1080(p) (60.000Hz)
Output Type: HDMI
Driver Name: aticfx32.dll,aticfx32.dll,aticfx32.dll,atiumdag.dll,atidxx32.dll,atiumdva.cap
Driver File Version: 8.17.0010.1103 (English)
Driver Version: 8.911.0.0
DDI Version: 11
Driver Model: WDDM 1.1
Driver Attributes: Final Retail
Driver Date/Size: 10/26/2011 02:05:58, 748544 bytes
WHQL Logo'd: Yes
WHQL Date Stamp:
Device Identifier: {D7B71EE2-2BF8-11CF-FD77-4905BEC2C535}
Vendor ID: 0x1002
Device ID: 0x68B8
SubSys ID: 0x25431002
Revision ID: 0x0000
Driver Strong Name: oem35.inf:ATI.Mfg.NTx86.6.1:ati2mtag_Evergreen:8.911.0.0 ci\ven_1002&dev_68b8
Rank Of Driver: 00E62001
Video Accel: ModeMPEG2_A ModeMPEG2_C
Deinterlace Caps: {6E8329FF-B642-418B-BCF0-BCB6591E255F}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=
D3D9 Overlay: Not Supported
DXVA-HD: Not Supported
DDraw Status: Enabled
D3D Status: Enabled
AGP Status: Enabled


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