Sorry if this is too old but may help, and remember System Restore will keep record so I would turn it off during this.
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ATI drivers do not always uninstall/update very well so I have my own foolproof method to make sure that everything goes as planned. This is geared towards WinXP, but the principles are the same in all Windows OS's. This the closest I can get to a clean install of ATI drivers/SW that I have figured out short of a reformat.
You will need to do the file deletions in the \system32 folder while in safe mode (press F8 during startup and select Safe Mode).
Items you will need before you start:
Download all of the necessary drivers from here
Download and install Regcleaner (the best registry tool out there) from here.
System purging procedure:
Uninstall all ATI SW, drivers, hydravision, MMC, remote SW, whatever because it makes it easier to clean up your system and it won't cause problems when restarting. Don't reboot until everything is uninstalled.
Delete the following directories while in safe mode:
C:\ATI
C:\Program Files\ATI Multimedia
C:\Program Files\ATI Technology
C:\Program Files\Common Files\Raviscent Shared
note: you may not have all of these depending on your card type, just delete the ones you have
Clean out the C:\Windows\Temp directory. There is a chance there are some driver files in there as well.
Go to the C:Windows\system32 directory, make sure you are in detail view and right click on the header (where name, file type, date modified...is) and select more and check the box for Company. Then double click on the Company header and then delete all of the ATI files in there. Do the same for the C:Windows\system32\drivers directory.
Go to the C:\Windows\inf directory and delete any file that starts with ATI (open the inf files in notepad). Then go down to each file named oemxx.inf and open it, delete any that refer to ATI. Make sure that you delete the corresponding .pnf file as well.
Run Regcleaner. Delete any ATI entries.
Empty the Recycle Bin.
Unplug your internet connection or disable it. (Mainly for WinXP) If you don't Windows will try to download a driver for you and install it.
Reboot
Driver/SW install
Install the WDM drivers For AIW cards only. Do not reboot.
Install the Display drivers (Catalyst). Do not reboot.
Install the Control Panel. Reboot.
On startup Windows will install all of your HW went it boots and it will take a few minutes. If you are using a non-AIW card you are done. For AIW users, there are two more setps:
Install the MMC DVD Decoder SW. (may require a reboot)
Install the MMC SW. Reboot.
http://www.rage3d.com/board/showthread.php?s=&threadid=33656771