ati2dvag infinite loop error

I have a new Vostoro 200 slim tower withati radeon 2400 pro pre installed. whenever I try to run any sort of game the screen freezes and sometimes a blue screen result with the error message that the ati2dvag driver is  stuck in an infinite loop. I have updated drivers, uninstalled and reinstalled card, contacted ati (who referred me back to Dell) and searched many forums on the net to no avail. It happens with any relatively recent game I try even low level ones where the computer specs are double what is recommended.

Any suggestions or advice as to how I could solve this problem?