I have also tried the older software and drivers (7.9 and 7.6) as others were suggested to do, it had no effect. I am planning on getting an AIW 9600 so i can still have the capture abilities yet have decent graphics for PC applications, but for now I want to get this fixed. In addition to this my capture drivers won't be detected while i have my Radeon 9200 installed, so i've uninstalled it for this...If someone has a solution to this as well, much appreciation.
Here is an Example -

My System Specs -
Antec Model SL350 (350 Watt) Power Supply
ASUS P4B533-X Motherboard
Intel Celeron 2.2GHZ Processor
512MB PC3200 DDR Memory
WD 40GB 7200 RPM + WD 60GB 7200 RPM
ATi All-in-Wonder VE PCI 64MB
Windows XP Service Pack 2

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