Powercolor HD3850 AGP + Win 7 = Big problems

Hi! I have problems regarding Windows 7 and my graphics card (Powercolor HD3850 AGP). It seems that every now and then Aero would not function and revert to the basic theme. The window will always say, "Desktop Windows Manager has stopped working". Here is the report:

Problem signature:
Problem Event Name: APPCRASH
Application Name: Dwm.exe
Application Version: 6.1.7600.16385
Application Timestamp: 4a5bc225
Fault Module Name: atidxx32.dll
Fault Module Version: 8.17.10.233
Fault Module Timestamp: 4aba9fbe
Exception Code: c0000005
Exception Offset: 001c754e
OS Version: 6.1.7600.2.0.0.256.1
Locale ID: 1033
Additional Information 1: 0a9e
Additional Information 2: 0a9e372d3b4ad19135b953a78882e789
Additional Information 3: 0a9e
Additional Information 4: 0a9e372d3b4ad19135b953a78882e789

I have tried torrentg's solution to recognize my video card in windows 7, it installed successfully. I also tried AGP hotfix, it also worked fine for me. But after a few minutes, Aero would crash, and "Desktop Windows Manager has stopped working" would appear! Any help would be greatly appreciated! I'm really getting frustrated here!

My system specs:
Windows 7 Ultimate x86 version 6.1 (Build 7600)
Pentium 4 Northwood 2.8C GHz Socket 478
Powercolor HD 3850 512MB DDR3 AGP
1.25 GB DDR RAM
MSI 648F Neo
Samsung SyncMaster 733NW
OCZ Stealth X Stream 600W Power Supply

Your pc has malware. Fresh install of Win 7 while formatting is best.

Thanks for replying torrentg! Is it possible that the copy of Windows 7 I have is infected with malware? Because I have formatted my hard drive and initiated clean install 8 times already.

Refer to post #2.

Sacn with Malwarebytes if you want to attempt fixing your current Windows but I don't want any part of it. Good luck.

Thanks torrentg! Will get back to you in a jiffy.

Hi torrentg, I've already scanned my system with Malwarebytes, but there's no malware detected. Any ideas?

Nope.

Run sfc /scannow from an elevated command prompt.

Check the Desktop Window Manager service is set to local account. Look at Log On tab. (Use services.msc to get there, from start menu search.)

Also disable the AMD External Event service.

Check Windows event logs for suspicious or related events. Click on the links to bring you to Microsoft pages for possible help.

You probably have some funky software set to start with pc when booting. Look at that too.

That's weird, the steps above didn't work either. Hmm... I guess I'll just try to do a fresh install and format my drive again. Will update soon, thank you very much!:)