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Blue Screen - igdkmd32.sys - Office 2016

We have around 500 computers. Since upgrading Office 2010 to Office 2016 (on windows 7) I am getting random\erratic\occasional blue screen crashes on a certain model of computer. The details indicate the Intel Graphics driver. I have tried reinstalling the latest driver (this is still 5 years old though) and removing the intel driver to allow the Microsoft driver to install itself, but still getting occasional crashes. Motherboard - Intel DG35EC.

Is it definitely the graphics driver or could it be something else? I don't know how to progress really. Any thoughts?

BLUE SCREEN INFO:
The problem seems to be caused by the following file: igdkmd32.sys

If this is the first time you've seen this stop error screen,
restart your computer. If this screen appears again, follow
these steps:

Check to make sure any new hardware or software is properly installed.
If this is a new installation, ask your hardware or software manufacturer
for any Windows updates you might need.

If problems continue, disable or remove any newly installed hardware
or software. Disable BIOS memory options such as caching or shadowing.
If you need to use safe mode to remove or disable components, restart
your computer, press F8 to select Advanced Startup Options, and then
select Safe Mode.

Technical Information:

*** STOP: 0x00000116 (0x85b20008, 0x92422f20, 0x00000000, 0x0000000d)

*** igdkmd32.sys - Address 0x92422f20 base at 0x92411000 DateStamp 0x4aba7471
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Qlemo
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Thanks, I am running furmark graphics stress test on one of the model computers and its not crashing....is this a surprise. I have also noticed some minidump files dated before the office 2016 upgrade...  

could it be something else or is the evidence irrefutable?

"The problem seems to be caused by the following file: igdkmd32.sys"
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Agree, the issue is that driver. The BSOD occurs because features are used in a way the driver does not expect them to be (does not make safety checks for memory blocks and sizes). As said, any change can help, including using much older drivers.
What is your hardware spec for RAM, HDD?

Have you looked into BIOS settings regarding the maximum allocation of RAM to the integrated video controller?
I am currently fighting an issue with Windows 10 and and Intel driver. The intel Driver is locking up the computer. Hard freeze. One suggested resolution resolution is to try a 5 year old driver which I will do today.

In your case, for debug, do what I did on one. Put an external video card in. I used a inexpensive little Radeon. Then uninstall the Intel driver. It will tell you right away if the Intel Driver is the problem.
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I like the idea of increasing Max graphics memory and there is a Integrated Graphics\DVMT setting in the BIOS
128MB (current setting)
256MB
MAX

but then I have just read that in Windows 7 this BIOS setting is ignored and Windows sorts itself out. See screenshot from within windows....
thoughts?
gfx-windows-7.docx
I would think a video card would be a video card whether on-board or external. If you want to ret and get around this error  without using a third part video card you are either going to have to play with the video settings i the BIOS or with the drivers. For the record the fix on my issues is supposedly using a year old driver about 2 revisions back.
Google for intel g35 express chipset driver windows 10...

Have a look of the second result "How to Manually Install an Intel® Graphics Driver in Windows" may help you.
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can anyone confirm whether the Integrated Graphics\DVMT setting in the BIOS is relevant when the OS is Windows 7, or whether the settings in the OS dictate the memory allocated to Graphics, and this is ignored?

DVMT:
128MB (current setting)
256MB
MAX


Thanks
Set to MAX and the maximum video RAM will be 358MB.

http://www.intel.com/content/www/us/en/support/processors/000005472.html

Listed under "What is the maximum amount of video memory my computer can use?" in the link above.
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OK, so as my current setting is 128MB it must be worth getting that value up to see if it addresses Blue Screen.
Do you have at least 4GB RAM for your win 7 x64?
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hardware graphics looks good to consider as well, I could turn it off but will it have a negative impact on how office looks and runs?
Hardware graphics acceleration is on by default so as to have the same user experience if end users upgraded from win 7 to win 10.
Word 2016, Excel 2016, Powerpoint 2016 and Outlook 2016 have enabled hardware graphics acceleration  by default.
Hardware graphics looks good to consider as well, I could turn it off but will it have a negative impact on how office looks and runs?

The negative impacts are listed below.

"When you use Microsoft Office programs, you may notice that visual features differ from one computer to another. For example, on one computer, you may see animations in Excel when you scroll through a worksheet on one computer. However, on another computer, you do not see the same animations.

Additionally, you may experience one or more of the following symptoms that reduce the functionality of an Office program:
An Office program is blurry.
Your screen flickers or flashes.
An Office program is either mostly all white or all black.
Text in your document is not displayed well.
Your Office program crashes.
The performance of an Office program (other than startup and shut down) is reduced.
In Microsoft Lync, there may be video delays or slowness when you are on a video call."

Source: https://support.microsoft.com/en-us/kb/2768648
The video settings are not ignored. I forget the chipset but it was with there DG33BU they had problems and changing the video settings corrected it. Try changing the video settings.