OK, found this (your general problem is quite common! I have nVidia, so can't play w/ CCC myself):
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OK, so I was having the same problem everyone else is having with the
drivers not installing and CCC not working, not the first time this has happened, seems like the Catalyst installer doesn't like updateing *****. But I fixed it and here is how I did it:
Note: I just tested this with Windows Vista Ultimate and Windows 7 Ultimate and it also works this way.
First, run the Installer package and after it finishes unpacking the files, cancel the setup.
Go to your device manager and update the
driver manually by locating the specific folder and finding the .INI file, i.e. "C:\ATI\Support\9-11_agp_hotfix_os_ccc_whatever\Packages\
Drivers\Display\XP_INF\CX_91530.INI".
Now go to your add/remove programs and uninstall the ATI Catalyst Install Manager and have it remove all ATI software.
Reboot you PC and Run the newest CCC installer. Do the Custom install and not the Express install because you're going to uncheck everything but the CCC software. Then finish the install.
Like I said, this is how I did it and it worked for me. Results may be different for you, but this is another way you can try to get it working.
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I don't know why people are uninstalling .Net and VC++ and everything else. This will NOT fix the problem! All you have to do is uninstall the older ATI software, reboot, and install the new software. This problem is occuring because the Catalyst Install Manager doesn't update the
drivers and software correctly so it causes problems. The drivers can be installed manually through the device manager and then you can use the Catalyst Install Manager to install a fresh copy of CCC. (Catalyst Install Manager = Catalyst setup file you download, same s**t)
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Good luck. A Guy