ATI 8500DV Freezes system in 2d

Sandman71

I have a weird weird problem. If I alt-tab, try to resize a window or drag n drop, 95% of the time my PC will totally freeze up (it also happens randomly when I minimize a window, but that's fairly rare). This only started happening after installing the ATI 8500DV AIW.

System specs:
ATI 8500DV AIW
AMD 1.4 Athlon
512 MB DDR RAM
Asus A7A266
SBLive!
Dlink 10bt NIC
Windows XP Pro

THis never happened with my Geforce2 in the same system. I've uninstalled and re-isntalled drivers, tried multiple catalyast revisions (this has been going on for about 8 months now). ATI tech support was no help, neither was Asus and Ali.

This problem NEVER occurs in 3d mode, only in 2d. I had uninstalled the Nvidia Detonator drivers before installing the ATI. I even manually searched thru my registry to no avail.

I've tried multiple things, over and over again, adn I'm at the end of my rope. The only 2 options I can think of is either format and re-install, or swap motherboards (neither of which are appealing and will only happen as a very last resort). Anyone ever see this? If so, is there a fix?