Weirdest Problem I've EVER Had

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Well, I've had this computer for like 2 weeks or so, and already having a problem. When I turn the computer on there are a bunch of white and green dotted lines on the screen at startup, and when windows would start I would get BSOD and "ati2dvag.dll is stuck in an infinite loop... dump of physical memory," error.

I've been searching and trying fixes for about a day now, I've tried updated drivers from ATI which cause the problem, cause as soon as I remove all ATI software the computer WILL start up, but there are very light vertical bars of color on a couple sections of the screen now, and when I try to play any games it says there is no 3D device, but atleast no BSOD and I can browse the web. Tried many other things which I will list here:

*Tweaking gfx card settings, such as 8x down to 4x, software acceleration, fastdraw, OC off.
*Added a temporary fan over night, runs at about 30 C to 34 C now.
*Unplugging and plugging card back in, checking for dust, making sure fan is running all ok.
*Tried switching CPU to AGP controller to PCI bridge thing (the fix you see all over the net).
*Installing older drivers that were rated as more stable and OMEGA drivers.

PLEASE HELP if you can, thanks you.

Radeon X1600 pro 256mb
VIA P4M890-M7 motherboard
Pentium 4 3gig processor
1 gig memory
80 gig hard drive (with like 55 gigs of free space)
430w Power Supply
 
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