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GOOD NEWS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
(Had To Get Attention)

Catalyst 11.7 Update seems to have fixed these issues (Release Notes)

Highlights of the AMD Catalyst 11.7 Windows release includes:

Resolved Issues for the Windows 7 Operating System
This section provides information on resolved known issues in this release of the AMD Catalyst 11.7 software suite for Windows 7. These include:

All issues experienced with mouse cursor lag have been resolved
Resolves system hangs seen in the AMD Catalyst 11.6 driver on specific HDMI and DP displays
Log event (Event ID 62464) issues when playing video content have been resolved
Bluray playback using PowerDVD 10 under High Performance mode no longer randomly displays a blank screen.
Bluray playback using PowerDVD 10 under High Performance mode no longer randomly hangs.
Some Divx format files no longer display video corruption using WinDVD.
AVIVO Video Quality settings are now correctly applied to Flash Video Content.
AMD SteadyVideo is now applied to Home Video clips when using WinDVD 10.
Random screen corruption is no longer displayed when changing desktop themes.
Chequerboard corruption is no longer displayed intermittently when playing DirectX 10 titles in a Crossfire configuration with Eyefinity enabled.
Shogun II now renders the cinematics correctly when run in various Eyefinity configurations.
Video playback now works correctly when Hardware acceleration is enabled with VLC Player version 1.1.9.
Crossfire now functions correctly when playing Hamilton’s Great Adventure.
Video corruption is no longer observed when when using the Forward slider on 720P Divx format video clips using Windows Media Player and Windows Media Center.
PowerDVD now correctly handles 3D Bluray content.
Portal 2 no longer displays flickering on water surface textures with Medium and Low Shader detail settings.
Image stabilization now functions correctly when playing Divx content using Windows Media Player.
Wraparound corruption is no longer displayed intermittently after exiting a 3D application.
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