Having some issues with my new graphics card that I believe are driver related.

I just bought a msi R6870 hawk graphics card and I've been having issues getting it to work. I went to the msi website and downloaded the latest driver from there but for some reason I can't run any games.
I tried terraria and all it showed was a blinking terraria logo in fullscreen with some music in the background. I can watch videos and movies fine but any game can't be run. (Also when I exit out of a fullscreen game that didn't work It turns my resolution down to it's lowest which I then have to set back to 1920 x 1080.)
I had this issue before on my hd 5670 but I got around it by using an older driver version. I attempted about 6 different driver versions ranging from 10.10 to the latest.
I did remove the hd 5670 drivers before installing the ones for the 6870.

Any help would be appreciated.

Asus M2N-E : Motherboard
R6870 Hawk 1 gig : Graphics Card
athlon ii x4 955 be : CPU
4 gigs of ram
120 gig harddrive + 2 externals (1 tb & 750 gig)
Windows XP Sp2
600 watt : PSU

Just so it's a bit more clear on what happens when I attempt to run a game...
I start the game, it opens the game but at a very low resolution, game screen just sort of flickers not allowing me to do anything, I end up ctrl-alt-del out of it and the resolution of my desktop is also set to it's lowest resolution (640 x 480 or whatever it is).
I can then change it through the display properties again back to it's native but if I start the game again the same thing happens. Just to clarify it's not just one game it's all games I try to play.

You should download the drivers from the ATI website. It is an ATI card, right? Sounds like an ATI card.

You might also want to thoroughly clean your computer first if you're really been installing and removing that many drivers.

http://www.drivercleaner.net/

Don't know if it's still free, but that always used to do the job real well.

Well I've tried the MSI drivers and 4 different versions of the ATI drivers. Drivercleaner isn't free do you know of any other similar programs?

Well I got one game to run but it only runs at 640 x 480 and allows no other resolutions.
Also not sure if this is useful information or not but in my display properties it shows 2 displays both called amd radeon 6800 series but only one of them allows me to change the resolution. The other display only shows the resolution I'm currently using.

It shows two monitors because your videocard most likely has two VGA or DVI connectors.

Could you hook your monitor up to the first port?

Yeah I can and have tried switching it to the other port. No change.

[Moderator]

I'd return the card...

Well I've had this issue before with my old card as well. So I doubt both cards would be delivered with this problem.

[Moderator]

If thats the case it may be your PCIe slot that's the issue...

Did you install all the drivers for your chipset?

Well I installed the chipset package along with one of the bios versions. Other than that no I didn't install any of the other files but I didn't think they'd be needed.

I also just downloaded driver cleaner and deleted the video drivers along with an old set of nvidia display drivers I had lying around. I had a good feeling about it but I'm still experiencing the issue.

Have you referred some information on this link for Win XP? http://support.amd.com/us/kbarticles/Pages/GPU-2-ATICatalystSuiteDriverXP.aspx

I noticed that driver cleaner deletes all files but these two: ati2evxx.dll & atiadlxx.dll
Could they be the source of the problem or are they just useless files?

Also whenever I install the drivers it ends saying "installed but with warnings" I check the log and there's no warnings or errors listed but everything says installed successfully.

Well I discovered something else. I can play a few games but only if I use windowed mode. I also have to set the resolution manually outside the game to 1920x1080 and it'll run.