9400GT graphics card problem

Hello,
I recently have been having crashes on my PC and I think it has something to do with the graphics card. I need your help on this. I have attached a pic of the BSOD. It started about a month ago when my screen started giving random blackouts for a few seconds and then used to come back again. Then suddenly one day the BSOD appears from nowhere while starting the PC after the "Starting Windows" screen. This continued for a few days after which the BSOD stopped appearing at all. Only the screen would turn blank after the "Starting Windows" screen and the monitor would go into standby mode. Even when it would start by chance sometimes there would be blue lines and distortions appearing on the screen and then usually while running a youtube video the screen would go blank and then I would even stop hearing the video (which according to me means the PC crashed eventually). I sometimes even get this blank screen which revives in a sec and I see this message on the pop up bar saying Nvidia drivers stopped responding or something. I tried updating to the latest drivers several times but in vein. Now my PC doesn't start at all. The only way of starting it is going into safe mode, uninstalling the video drivers and then starting it with which it starts properly. But then again when it starts windows automatically installs "VGA graphics controller" which means the video drivers if I'm not wrong and then when I start it again, the same old story. I run Windows 7 Ultimate (SP1) 64-bit. Now I'm really confused cuz I have no idea what might be the problem here. Should I update the Motherboard BIOS? (I've never done it before), Should I buy a new graphics card? Should I clean install Windows again? I really don't know what to do I'm stressed out and depressed trying to make this thing work. Please help me.

My system is:
Processor - i3970X
Motherboard - X79-UD3
Ram - Corsair 16GB (8GBx2) sticks
Graphics card - Geforce 9400GT

I went out and bought a new geforce GT610 and tried installing it. I started the computer with new card installed but the pc won't go past the post screen! This is what exactly happens: I hear a beep which I normally hear when the pc starts but then it doesn't go ahead of the post screen. It just gets stuck there. Then I hear three spaced out very short beep and on the third one the screen goes blank with a cursor blinking at the top. Nothing happens when I try to type anything though. I tried putting in my old card back and strangely the pc starts. But only the vga display works on the old card now. Another strange thing is just yesterday I had my friend bring his card to test which is quite old. On his card I could only get the dvi display to work and not the vga. His is a fully functional card though. This is geting really strange now. Is it my motherboard bios I need to update or a full clean install of windows 7? Can someone please help me?