How do I fix "Display Driver Stopped Responding"...

try to upgrade your video driver and reset your BIOS to default settings.

How do I do that?

Windows said I have the best update
8.17.12.5896

here some fixes :  http://www.repairyourpcnow.com/resources/atikmdag-has-stopped-responding.php
this guy bought another video card :  http://i.nconspicuo.us/2007/02/13/display-driver-stopped-responding-and-has-recovered-nvlddmkm-nvidia-driver/

nobus: It's a laptop, makes it kinda hard to replace the video card, especially with int being an intel GMA.

artismobile: I do agree that it's likely that your display driver needs updated.  Sadly, this is one area where Windows 7 doesn't help much.  You should be able to download the driver directly from intel and install it.  Here is a link to the latest version of the driver from intel, it was updated two weeks ago so I doubt you have the latest.

Says it does not meet the minimum requirements.  Will not let me install.

Look on the bottom of the laptop for the model number or part number (P/N); it should be like A665-xxxx.  The exact model will likely tell us if the laptop has integrated video (such as intel GMA) or a discreet video card that needs specific drivers.  Also, can you confirm that the OS is 64-bit or 32-bit?  The quickest way is to look on your c: drive and see if you have a Program Files (x86) directory in addition to your Program Files directory.

it looks like dad hardware to me
check in device manager and event viewer for problems

Seems to have corrected the problem.  It has not re-occurred in 2 weeks