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100% CPU utilization with new Graphics Card

I have a very weird issue with a tower I am working on.  Here are the system Specs:
AMD Athlon 64 3000 1.8Ghz (clocked to 2.1GHZ) socket 939
ATI Radeon 6570HD 1GB GPU
4GB Corsair DDR PC3200 Memory
Asus Motherboard 800MHZ FSB(don't know the model # off the top of my head)
OS was Vista 32bit but upgraded to 7 32bit (clean install to ensure vista was not the issue)

Basically what happened was I upgraded the Video card from an Nvidia GeForce 8800GTX 512mb to the Radeon 6570 over the weekend.  When the video card is in and using generic windows drivers the machine runs fine and processor utilization is barely at 20%.  However, once I install the AMD drivers processor utilization stays around 100% when nothing is running.  If I open task manager it says task manager takes up 99%.

Steps I have taken:
Checked for malware
Made sure all old Nvidia software was removed
Uninstalled drivers and grabbed latest drivers from web
Tested Radeon card in another machine, works fine
Clean Install/upgrade to Win 7 OS from Vista
Msconfig to clear all startup items
Uninstalled Catalyst control center so I am just running the driver only
Changed slots on motherboard to 2nd PCIex16 slot.
Overclocked processor to 2.1GHZ from 1.8
Swapped back in old Nvidia card, worked fine

I saw a few forums that had similar issues but never a definite fix.  I am basically out of ideas at this point and any help would be appreciated
2 Solutions
Obviously this is some sort of driver bug. I would contact the vendor and complain and look for a fix. If they can't provide one, get your money back and buy a different make/model.

Sometimes that is all one can do ... make the manufacturer provide a better product or take your business elsewhere.
I'm assuming you are running the 12.8 driver, is that correct?  Try dropping down a level on the driver.  Sometimes moving to an older version of the driver will fix an issue like this until enough people have the same problem that a fix is issued.

Catalyst 12.6 for your card.

This is not necessarily a driver bug - generic Windows drivers may not be accessing all of the hardware.  I suggest booting with a Knoppix CD and checking whether the cpu is stressed.  If it is, you likely have a bad video card, which unfortunately is not so rare these days.  I just bought a Radeon HD7850 and the second DVI port was dead.
Possibly the motherboard is PCIe 2.0 and the ATI card is PCIe 2.1.
cmhtechAuthor Commented:
Sorry I wasn't replying I was having an issue verifying my email address.  Basically I ran the knoppix disk and the CPU was spiking when I opened any application from the disk.  Then I got to looking into the PCIe 2.0/2.1 issue and updated my mobo's BIOS (it was 4 updates behind).  And it worked.  Thank you guys for all your help.  I am splitting points between Callandor and Darr247.

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