Display Driver stopped working,AMD ATI Mobility Radeon HD 4250

Since about december of last year ive been getting this error where my screen would freeze for about 2-10 secs then go to black screen shortly, then I get a little notification saying display driver amd XXX stopped functioning and has recovered.
I will provide a back story for better troubleshooting.It seems it started happening after I got a new power cord but now that I think of it, it would happen every once in a while while playing TS3 before my original psu broke (although it was short circuiting I guess, when it started happening), so I thought it was a issue with the power.But I have a new one now,however im not counting this out as a possible reason.I clicked the update driver option,it updated and everything seemed to go back normal.Game working fine 3d programs too.Then days later it starts back.
So recently I re-installed the driver and updated it (updated it two or three times prior to uninstalling and the same happened every time, worked for awhile then started back freezing), things seemed normal for awhile and yet it started back freezing a day or 2 later.My question is, is it the graphics card itself going bad or is it something "software" related? I think it software related because if it was the actual graphics card the update wouldnt have cause it go back normal for a short while.

Any Help ?

edit:Also its been getting worse over time.At first it would only do it when watching videos on youtube and not much if at all while playing games.Actually it rarely does it while watching videos now.. Just mainly when im playing TS3.