Windows 7: Resolution problem ATI x1200

I have a problem with my windows 7 ultimate => when i enter a game (Counter-Strike, Quake 3) it opens in the center of the screen with black all around it. PLEASE HELP!
I have also tried to change the resolution from within the game, but at max. resolution (1024x768) it still has black around it.

• i have ATI x1200 and the latest driver
• when i change the resolution on the desktop (right click=>screen resolution ...) and turn it to 1024x768 from 1280x800, the resolution doesn't change like in windows vista (everything looking bigger), but it appears that same black surrounding and the screen is smaller
• i have all of my drivers up to date and 2gb of ram so that can't be the problem
• even when the blue screen of death (funny name ) appears, it appears in the same way
• i have a Toshiba satellite A215-S7425

PLEASE HELP AND THANK YOU!

This does seem like a driver issue. Please fill in your specs, and make sure you have DirectX, Graphics drivers, etc.