New 8.4 hotfix out head here to grab it
AMD Customer Care
737-31542: DirectX not functioning with Radeon AGP graphics cards
The information in this article applies to the following configuration(s):- Catalyst Display Driver 7.9 and higher
- Radeon™ HD3850 AGP series
- Radeon™ HD2600 AGP series
- Radeon™ HD2400 AGP series
- Radeon™ X1950 AGP series
- Radeon™ X1900 AGP series
- Radeon™ X1800 AGP series
- Radeon™ X1650 AGP series
- Radeon™ X1600 AGP series
- Radeon™ X1550 AGP series
- Radeon™ X1300 AGP series
- Radeon™ X1050 AGP series
- Radeon™ X850 AGP series
- Radeon™ X800 AGP series
- Radeon™ X700 AGP series
- Radeon™ X600 AGP series
- Radeon™ X550 AGP series
- Radeon™ X300 AGP series
- Radeon™ 9800 AGP series
- Radeon™ 9700 AGP series
- Radeon™ 9600 AGP series
- Radeon™ 9550 AGP series
- Radeon™ 9500 AGP series
- Windows Vista 32-bit Edition
- Windows Vista 64-bit Edition
- Windows XP Professional
- Windows XP Home Edition
- Windows XP Media Center Edition
- Windows XP Professional x64 Edition
Symptoms:
After installing Catalyst 7.9 or higher an error is received launching DirectX based games. The error indicates that Direct3D Failed to Initialize or similar.
In Vista your Experience score will drop to 1.0.
The DirectX Diagnostic tests will fail in both XP and Vista.
Solution:
Download Catalyst 8.4 Hotfix by clicking on the appropriate link below:
Catalyst 8.4 Hotfix for Windows XP Professional and Home Edition
Catalyst 8.4 Hotfix for Windows XP Professional x64 Edition
Catalyst 8.4 Hotfix for Windows Vista 32-bit Edition
Catalyst 8.4 Hotfix for Windows Vista 64-bit Edition