I'm also not sold on the PSU panacea. Your voltages would have to be completely out of line, which would exhibit problems in other ways, and a single 5770 doesn't suck down enough juice to even make a 750 watt power supply break a sweat.
Is it a continual flicker for a short period of time, or more like a single flash, and then the game continues on? The continual flickering could be a monitor/cable issue. A single flash would be indicative of either the graphics card and/or the monitor.
1) Uninstall the Catalyst software/drivers. Clean Sweep if you have to.
2) Reinstall the most recent drivers from AMD.
3) If you are still experiencing the flickering, switch out the monitor cable if you have a spare. If you are unable to recreate the flickering reliably, then you had a bad cable. Throw the old one away and buy a new spare if you need to.
4) Failing that, switch out the monitor if you have another one you can use or borrow. If you are unable to recreate the flickering reliably, you are most likely looking at buying a new monitor.
5) Failing that, you are looking at narrowing down a hardware issue with the graphics card. If it is still under warranty, you can try and get support from the manufacturer. If not, start pricing out an upgrade.