I've got same problem with you after I updated the driver
for my ATI 3650 HD..
But, this problem solved for me after Uninstalling the AMD Display Driver..
Go to "Control Panel", "Uninstall or change a program" and Right Click on the "AMD Catalyst Install Manager" then select "Change".
On the AMD Catalyst Install Manager window, "Next", click on the first one "Uninstall manager", "Next",
On the Uninstall Window, select :"Custom", "Next" , and click on the "AMD Display Driver" only. "Next", wait until the uninstalling progress complete. "Finish"
Try to check your game or restart your PC if you need to before check your game.
It works for me. I don't know if it works for you. I hope it works too..
but, on some forums, the simplest way is to Uninstall the driver (complete uninstall), and then Install the AMD Catalyst 12.1 or 12.2 driver..
Sorry for my bad english..