Ok, 'richpikl', this may be the crux of your issue...
Since you say the vid card is based on the Radeon X1650, the actual ATI Radeon X1650 does not support Windows 7; drivers for it go as far as Vista x64. I happen to know this because I had an X1600 (same thing basically) and swapped it out of another vid card for this very reason. This discovery grew out of intially realizing I couldn't get the clone to TV to work and then I talked w/ an engineer @ ATI/AMD who confirmed it was not fit for Windows 7.
In other words you may be beating your head against the wall trying to get that card to give the desired functionality of graphics.
Thanks,
Drew
"A scan a day keeps the nasties away!"