And you could be right. This TDR issue is so prevalent across both Vista and Windows 7 platforms, with both nVidia and ATI engines, and across every brand of video card that it would be foolish to rule that out. The fact that there is no one solution that works for everyone makes it all the more frustrating.
This is a good read:
NVIDIA Statement on TDR Errors - NVIDIA Forums
Who made your card? Some brands have the problem more consistently than others. You could check their forums for clues. I suspect that a video card must perform flawlessly to operate in a Windows 7 environment. The 9500GT card I got was from PNY. When I got my replacement GTX260 and installed it the video problems were gone. It could not be more clear, in my case, that the card was the problem.
The drill:
Check the hardware connections - re-seat the video card and memory, make sure the contacts are clean.
Run Memtest and be sure there are no memory errors.
Run Prime95 for 12 hours or more without errors.
Test the power supply. Be sure it has the ample amperage for your card and the system. You can use a multimeter to measure for a steady 12v to the card's power connectors.
Check for and install an updated BIOS, particularly if it says the new BIOS corrects memory errors or bug fixes.
Uninstall all video software and the drivers. (Some people say to run a cleaner program, some say this is unnecessary). Let Windows 7 install it's own driver. Check for video problems using the windows driver.
Install the latest drivers for your card. Or try older drivers. Always completely remove the old stuff every time.
If you have honestly done all of these diagnostics and the card still does not work than there is not much left to consider other than it must be defective. Although two defective cards in a row would be pretty rare.
If you really think the issue is with the OS you might try a new, clean install.
HTH