Repeated 'Graphics driver has failed and has recovered' error

I attached the file asked for and here are my system specs listed below:

Prebuilt Gateway PC - FX6860
OS: Windows 7 Home Premium 64bit
Processor: Intel Core i7 3770
Card: AMD Radeon HD 7770 2GB
12GB RAM

I'll try to describe what's happening as best I can. I've run into multiple issues when trying to either record game footage with Fraps or when trying to render videos in Vegas Studio 11 HD. What ends up happening is the screen will go black for 2 to 5 seconds and then come back with Graphics driver has failed and recovered. The application I'm using at the time will remain a blank window while the desktop and everything else will reappear. I am also unable to close out of the application I was using without using the task manager to do so.

I'm not computer literate and so I can't really do much. I had a friend run memtest and it came back normal. All my drivers are up to date, windows is up to date. So far this issue has only happened when using Fraps and Vegas so I'm not sure if this is purely a software problem or if it indicates something is wrong with a component in the computer.

One other thing to note is that under the CCC I've monitored temps with both the side of my tower on and off when this error happens. With the case on it was running at 61c and with it off it happened with it at 43c. This would lead me to believe it isn't related to my machine running to hot.

In the action center after this happens it lists video hardware error and the following:
BCCode: 117
BCP1: FFFFFA800E1624E0
BCP2: FFFFF8800800A250
BCP3: 0000000000000000
BCP4: 0000000000000000
OS Version: 6_1_7601
Service Pack: 1_0
Product: 768_1
Bucket ID: X64_0x117_Tdr:2_IMAGE_atikmpag.sys
Server information: d22b49e7-8ab0-4377-913d-8b692592e241

Any help would be appreciated as I just got this computer just under a month ago and it would suck to find out it is incapable of handling what I need to.

Software Concerns:

Please do not use CCleaner for the duration of your troubleshooting with us.

Analysis:

No .dmps were included in your reports. CCleaner likely deleted them during a disk cleanup. Your Event Viewer logs do indicate a 0x116 BugCheck blue screen crash.

BugCheck 0x116

All of your crashes were DirectX/graphics card related. DirectX comes installed with Windows, so this may indicate Windows corruption. It may also be that you have corrupted drivers or a graphics card hardware problem.

• If you are overclocking any hardware, please stop.
  
  
• Check Windows for corruption. Run SFC /SCANNOW Command - System File Checker up to three times to fix all errors with a restart in between each. Post back if it continues to show errors after a fourth run or if the first run comes back with no integrity violations. Use OPTION THREE of SFC /SCANNOW Command - System File Checker to provide us with the sfcdetails.txt file if errors occur.

Follow the steps for Diagnosing basic problems with DirectX. To re-install your display card drivers as outlined in the DirectX link, use the following steps.

1. Download the drivers you want for your display card(s)
2. Click Start Menu
3. Click Control Panel
4. Click Uninstall a program
5. For NVIDIA:
   • Uninstall the NVIDIA Graphics Driver (this should uninstall all NVIDIA software and drivers)
   • Restart your computer
   • Make sure NVIDIA 3D Vision Driver, NVIDIA 3D Vision Video Player, NVIDIA HD Audio Driver, and NVIDIA PhysX System Software are not still listed under Uninstall a program through Control Panel
   • If any remain of the above, uninstall one at a time
   • If asked to restart after uninstalling any of the above, do so, and continue uninstalling any remaining NVIDIA items until all are removed
6. For AMD:
   • Uninstall AMD Catalyst Install Manager if it is listed (this should remove all AMD graphics software and drivers)
   • If AMD Catalyst Install Manager is not listed, use the following method to uninstall the graphics drivers (this applies to onboard graphics, as well):
     1. Click Start Menu
     2. Right Click My Computer/Computer
     3. Click Manage
     4. Click Device Manager from the list on the left
     5. Expand Display adapters
     6. Do the following for each adapter (in case you have multiple display cards)
        
        • Right click the adapter
        • Click Uninstall (do not click OK in the dialog box that pops up after hitting Uninstall)
        • Put a tick in Delete driver software for this device (if this option is available, otherwise just hit OK) and hit OK
     
     Alternatively:
     
     1. Login as an adminstrative user
     2. Click Start Menu
     3. Click Control Panel
     4. Click Hardware and Sound
     5. Click Device Manager (the last link under Devices and Printers)
     6. Expand Display adapters
     7. Do the following for each adapter (in case you have multiple display cards)
        
        • Right click the adapter
        • Click Uninstall (do not click OK in the dialog box that pops up after hitting Uninstall)
        • Put a tick in Delete driver software for this device (if this option is available, otherwise just hit OK) and hit OK
7. Restart your computer after uninstalling drivers for all display cards
8. Install the driver you selected for the display cards once Windows starts

Remember to try multiple versions of the graphics drivers, download them fresh, and install the freshly downloaded drivers.

   Warning

Before you proceed with the following, answer these two questions: Are you still under warranty? Does your warranty allow you to open up the machine to check hardware? If you are unsure of the answers to these questions, contact your system manufacturer. WARNING: The steps that follow can void your warranty!!!

Your crashes were all 0x116 Video TDR Error crashes:

• 
  
  H2SO4 said:

  These are all stop 0x116 VIDEO_TDR_FAILURE conditions.
  
  It's not a true crash, in the sense that the bluescreen was initiated only because the combination of video driver and video hardware was being unresponsive, and not because of any synchronous processing exception.
  
  Since Vista, the "Timeout Detection and Recovery" (TDR) components of the OS video subsystem have been capable of doing some truly impressive things to try to recover from issues which would have caused earlier OSs like XP to crash. As a last resort, the TDR subsystem sends the video driver a "please restart yourself now!" command and waits a few seconds. If there's no response, the OS concludes that the video driver/hardware combo has truly collapsed in a heap, and it fires off that stop 0x116 BSOD.
  
  If playing with video driver versions hasn't helped, make sure the box is not overheating. Try removing a side panel and aiming a big mains fan straight at the motherboard and GPU. Run it like that for a few hours or days - long enough to ascertain whether cooler temperatures make a difference. If so, it might be as simple as dust buildup and subsequently inadequate cooling.
  The above quote was taken from https://www.sevenforums.com/crashes-d...tml#post280172, which is linked to in usasma's thread about this error. Closely follow the first three posts of usasma's thread outlining STOP 0x116: VIDEO_TDR_ERROR troubleshooting and proceed through each step. Let us know if you need further help.

Thank you writhziden for the response. I will read through the usasma thread as well as follow your suggestions. I'll be sure to post a follow up detailing what I found and if the problem gets solved or not. (I hate finding threads that are 3 years old with the same issue I have yet the OP never said if they were able to fix it or what worked if anything lol)

You're welcome.

I appreciate you keeping us updated. Look forward to your results. :)

Best wishes those steps resolved it!

I apologize for taking so long to update on what the issue was that had been causing such difficulties but I wanted to at least put this here since I had said I would. So long story short after having gotten some advice on what to do I tried doing another memtest and dxdiag. Neither showed anything out of the ordinary so with repeated problems continually popping up I sent my computer in under warranty. I got it back a week later saying everything was working fine and that no issues were present (No hardware issues at least). Right around the time I got it back a new AMD driver update come out and after installing it the issue seemed to clear up. I can now record footage and do video editing without any problems.

The rub is that now flash videos crash my desktop by giving me a white screen. I looked around and have come to the conclusion that the drivers out for the 7000 series of Radeon HD cards are unstable. End result, I'm buying a new card, an Nvidia lol.

Thanks though to those that gave me advice.