Sapphire 7850 screen tearing

Vertical refresh in CCC fixes the screen tearing and i haven't noticed any drop in fps when enabling it, other than keeping it under 60fps obviously. I ran some benchmarks keeping it under 60 fps (average of 40) and there was absolutely no difference in the fps with vertical refresh on or off

I tried enabling it, did not change a thing. In game vysinc helped.

Roll back to 12.8 driver.

This video would help you understand Screen Tearing http://www.youtube.com/watch?v=DAiPmazmR_M

You must be trying to play the Games @ 60fps by Lowering settings.
This is causing Tearing. So enable settings till your Average fps is 40

Did you restart the game after you enabled it?

I enabled vertical refresh (CCC) and restarted the whole system after that.
If i turn on vsync in games i don't need to restart the game.

Essentially the CCC vertical refresh is another way of approaching vsync. Although I'm a bit puzzled why you would be experiencing tearing in the games that you are with the card you have.

So i removed all AMD/ATI stuff and installed 12.10 drivers, same problem. I tried also different cables (DVI-DVI/HDMI-DVI and DVI to VGA). I wonder if it is something thats is normal, no need to worry (maybe something with my monitor?) or is there a change that it is a GPU problem ? Unfortunately i dont have any other screens to test on.
Out of games i dont notice any tearing and in games vsync seems to help. Tearing also happens in places where my fps is below 60 (fraps).

Hmm that is odd. I mean there isn't a starting or ending point with tearing. Vsync normally helps however to my knowledge it helps with frames going beyond the refresh rate of your monitor. The video that Sumukh_Bhagat linked explains it so if your problems are solved with vsync that is good also maybe turning up settings in games could help as well. Say for example in Far Cry 3 if you have some settings turned down maybe turning it up will have vsync come in less.

It really doesn't sound like it's normal screen tearing. I have the same card and also play far cry 3 among many. Never had a problem I have only encountered screen tearing in skyrim before it was fixed in a patch.
Is your screen recognizd by Windows. Is it set to 60 hz in windows?

If in games Vsync are helping I doubt t's a faulty GPU at least. Sounds more like a problem with the screen.

Running unigen 3.0 there is a noticeble stutter in picture although fps is 60+ all the time (when it stutters there is a certain static noise in sound with it also). Maybe it is normal for unigen 3.0 ?
Dont know is has anything to do with thi current problem (vysing there wont help against this stutter).
And yes, it shows 60Hz for monitor under windows.

Maybe you should try to update your chipset drivers??... Somethng is not running as it should.

I have the latest motherboard drivers.

I'm beginning to think it's must be a screen/cable issue. You said you've tried every possible cable combinations? What resolution are you running?

Edit: It may be an unresolvable problem when reading this thread: http://www.tomshardware.com/forum/364703-33-radeon-7850-screen-flickering

It seems to be a random problem for some people but apparantly it's not easy to pin point the problem. You could try to flash your BIOS to see if that helps (only do this if you know how).

Unfortunately I can't help you any further but make sure to return to this thread if you solve the problem and let us know.

lower the resolution and check it and also check if response time of your monitor is greater than 2ms, that might causing the issue.

Response time for this monitor is 2ms, can this cause problems ?
Also i tried Planetside 2 and although there is some tearing here and there it isn't very noticeable.