Just got this from ATI's website too!--------------------------------------------------------------------
"DEVICE DRIVER is STUCK IN INFINITE LOOP" error in Windows XP
This issue affects different makes and models of video cards from various manufacturers under Windows XP.
The "Device driver is stuck in an Infinite loop" error message is usually the result of a system communication problem.
This error message does not occur on all systems configurations.
The following suggestion may help to correct this issue:
Please ensure that you have the latest Bios update for your Motherboard and test your system.
Make sure you have an adequate power supply.
Disable or enable AGP fast write and test your system.
Set your memory settings in the BIOS less aggressively and test.
If the above suggestions did not resolve your issue please contact your motherboard manufacture to obtain the latest chipset drivers."
-Rene