ATI Mobility Radeon x1300 Driver Download/Install Error  

Brief update. After some Windows Update I still encountered problems.
Here is how I could finally make it work again, as of now:

- google and download catalyst_8-31-100_vista32_rtm.exe file, you can find it here
catalyst_8-31-100-3-2-1_vista32_rtm.exe | DriverZone

- double click file to unzip/unpackage catalyst_8-31-100_vista32_rtm files in its folder, BUT do NOT run final setup

- google, download and run "mobility modder", you can find it here
DH Mobility Modder.net | Download | Hardware Upgrade
F1/Help menu will tell you how to use it. Remember to use both folder and memory options.

- now (and only now) run setup.exe in catalyst_8-31-100_vista32_rtm folder

- reboot and done

if you encounter problems it may be because previous versions of the drives had not been unistalled or did not unistall properly. In this case you can google, install and run Display Driver Unistaller (DDU), then re-do above steps. Here a couple of links where you can find it
Display Driver Uninstaller Download version 15.7.4.1
Official Display Driver Uninstaller DDU Download

This is how it worked, at least for me.
Hope I will not have to post any further update on this (meaning no more issues with this)