Direct3D Failure for ATI RADEON 9550

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Here's how it all started.

I was playing games on my computer one day when someone messages me. i decide to Alt-Tab out,and the screen resolution turned to the lowest setting it could go. i didn't think of it as anything, since some of my games do that all the time. The next day all my games started doing this, and in order to fix it, i had to restart my computer to restore my resolution settings. So i decided to install the latest video drivers. The games no longer work in fullscreen. i have rolled back the drivers countless times and have tried everything. I uninstalled all things ATI related, re-installed them back, installed new drivers and it still doesn't work. I run DxDiag Direct3d testing and i get these errors.

D3D7 Test Result: Failure at step 39 (SetDisplayMode to 640x480x16): HRESULT = 0x80004001 (Not implemented)
D3D8 Test Result: Failure at step 8 (Creating 3D Device): HRESULT = 0x88760827 (error code)
D3D9 Test Result: Failure at step 8 (Creating 3D Device): HRESULT = 0x8876086c (error code)


I can't seem to find some sort of solution to this..

Machine:

Machine name: CPQ-S6500NX
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.070227-2254)
Language: English (Regional Setting: English)
System Manufacturer: Compaq Presario 061
System Model: DQ181A-ABA S6500NX NA411
BIOS: Phoenix - Award BIOS v6.00PG
Processor: AMD Athlon(tm) XP 3000+, MMX, 3DNow, ~2.2GHz
Memory: 1024MB RAM
Page File: 753MB used, 1709MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: None
DxDiag Version: 5.03.2600.2180 32bit Unicode
 
Bump

Also, i have downloaded the 7.7 Catalyst. Doesn't work, unless im missing a step.


System restore does not work, I keep incomplete getting failures...thats probably out of the question...

is it possible that my graphics card died or fried out or something?
 
Okay..I will try that out once I get back from vacation. other suggestions are welcome too, because I am getting tired of restarting my computer 30 times a day.
 
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