Windows 7 Display Problem

I've a Core i3 processor with Intel DH55TC Mother board with HD graphics. The system is new and I've installed Windows 7 with drivers provided with Intel Motherboard. But once I installed the graphics driver my monitor shows lot of dots on screen.

I've LG 16" Screen LCD Monitor. If I uninstall the graphic driver, the dots will go but the correct resolution for my monitor is not available.

What's the solution for this issue? Please help.
Board Model:
Intel(R) Desktop Board DH55TC
Board Version:
BIOS Version:
Operating System:
Microsoft* Windows* 7 Ultimate

I've visited that intel driver update site & downloaded the driver. but while trying to install the driver, it is showing the driver you are installing is older than the version already installed.

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