I have a customer with the same issue. Her HP desktop did an automatic update recently (something I have advised her against allowing). It did it's thing and bam... her screen is messed up.
Have tried reloading the graphics driver > System states that the driver is up to date.
Have tried to uninstall the graphics driver > Driver reappears after restart.
Tried doing a system restore, no change.
Tried doing a system recovery, no change.
Tried everything I can think of, but the system refuses to accept my attempts to remedy this problem.
Customer is resorting to purchasing another computer altogether... A refurbished machine with Win 7 OS.
She's convinced (as I am) that WinX is bad juju.
I would very much like to tackle this issue if...