ATI Radeeon X1050 problem

If I perform a cleam install of Vista Ultimate x64 (Build 6000)
on Shuttle xPC SS21T with:
AMD X2 4200 & 2gb & 160gb SATA & ATI Radeeon X1050 Model:3080.
Connect3D ATI Radeeon X1050 is 256mb GDDR, PCI/E and
"Certified for Windows Vista".

Vista finds an X1050 and loads MS WDDM Drivers.
Screen Performance is abominable, around 5 secs between cursor click and
display response. It's as though WINSAT is running (I checked, it isn't
running).

After a lot of experimenting and reading, I downloaded the 29 Jan update
from ATI and installed the drivers and Catalyst Control. No performance
change noticable. Further, if I select any of the CCC options from the
start menu there is no visual output. Digging a bit I can see CLI pop up in
Task Mgr then disappear again.

Currently running with X1050 disabled.
Has anyone seen anything like this?
Any pointers, hints, tips, advice, constructive musings welcomed.

Thank you.

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VISTA Error report detail ...
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Product
Windows

Problem
Video hardware error

Date
01/02/2007 11:52

Status
More information available

Description
A problem with your video hardware caused Windows to stop working correctly.

Problem signature
Problem Event Name: LiveKernelEvent
OS Version: 6.0.6000.2.0.0.256.1
Locale ID: 2057

Files that help describe the problem (some files may no longer be available)
WD-20070201-1152.dmp
sysdata.xml
Version.txt

Extra information about the problem
BCCode: 117
BCP1: FFFFFA8003869960
BCP2: FFFFF98003683CA4
BCP3: 0000000000000000
BCP4: 0000000000000000
OS Version: 6_0_6000
Service Pack: 0_0
Product: 256_1
Server information: 3f98132c-ab21-4ebe-8906-d7245404f2b6

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Misc Info

ATI Radeon X1050 mod 3080
Driver Assembly Version 8.333.0.0 Assembly Date: 18JAN2007