Which drivers did you install the ones from the disk or the ones recommended from the ATI website? The ones recommended by the website are wrong since ATI has dropped support for it's pre-DirectX 9 cards including your Radeon 7000. Try removing your old ATI drivers and control panel and install the Catalyst 6.5 series (the last to support the Radeon 7000).
http://support.ati.com/ics/support/d...estionID=22264