My experience with an X1950XT wasn't dissimilar!
It would crash often and lock up. I bought this 7600, then all my games worked minus Counter-Strike: Source which had the same error.
But recently I bought a new PSU - I upgraded from a 550W Thermaltake to a 620W Corsair, and now CS:S works!
So I think my PSU was the problem all along. Going from my experience, I would say your problem is the PSU
	
		
			
		
		
	
				
			It would crash often and lock up. I bought this 7600, then all my games worked minus Counter-Strike: Source which had the same error.
But recently I bought a new PSU - I upgraded from a 550W Thermaltake to a 620W Corsair, and now CS:S works!
So I think my PSU was the problem all along. Going from my experience, I would say your problem is the PSU

 
	 
  
 
		 
 
		 
 
		 Of course your PSU could be fine! But don't rule it out as I've wasted about £100 in troubleshooting by ruling my PSU out too early only to find it was the problem after all.
 Of course your PSU could be fine! But don't rule it out as I've wasted about £100 in troubleshooting by ruling my PSU out too early only to find it was the problem after all. 
 
		 
 
		 
 
		