found this thread in a google search... having a similar (kinda) issue.
i have a dell Inspiron 1501 with the ATI radeon Xpress 1150 graphics card.
when i ran Windows 7 Beta 7000 (32bit) i successfully installed the drivers meant for Vista 32 bit without issue.
i just now upgraded to Windows 7 RC (Build 7100) and nothing i try for video card drivers works. now the interesting this is the ATI installer claims i have a Radeon 200 series card.
Other detected devices
ATI RADEON XPRESS 200 Series
Manufacturer ATI Technologies Inc
Device ID 0x5950
Vendor ID 0x1002
Class Code 0x060000
Revision ID 0x10
Subsystem ID 0x01f5
Subsystem vendor ID 0x1028
now i know this is not a fact, since Aero worked on Build 7000 and the Xpress 200 series card is not compatible with Aero. also checked directly with Dell and my computer came equipped with the Radeon 1150.
after messing with build 7100 for a few hours i tried to go back to build 7000 the ATI drivers i previously used will not work at all.
is it possible my integrated video card is failing?