I am having video issues involving the "Fullscreen Mode" option. Here are my system specs:
Laptop: Acer TravelMate 8210-6597
CPU: Intel Core 2 Duo Processor T7200 (2.0 Ghz, 667 MHz FSB, 4 MB L2 Cache)
RAM: 4 GB DDR2
GPU: ATI Mobility Radeon X1600 512MB HyperMemory (8.422.0.0 Driver)
OS: Windows 7 64-bit
Whenever I run the game in "Fullscreen Mode" I get black horizontal lines that flash across the screen very quickly. The bars seem to contain parts of the background in them. I have tried adjusting resolution and video quality, but the problem still happens. The video works fine on all settings when "Fullscreen Mode" is disabled. The game is installed in the default folder from the installer and I've patched the game with the Windows 7 patch. All drivers are updated.
Try going into the Catalyst Control Center and setting the image quality to balanced if it's on either performance or quality.
You need to download the latest Ati drivers. The latest version from AMD website is version 10.2. This helped to solve my graphic problems on my Toshiba Laptop with the game. First, save a system point just in case you need to roll back the driver install and go to the website and choose Desktop even though you have a laptop and match all the rest of the choices and you should have the option to download the latest video driver. Just to let you know that both our video drivers are already in legacy supported mode.
Drivers directly from ATI won't install on this machine because it's an OEM by Acer, TC has the most current driver available directly from the manufacturer.
My driver and Catalyst Control Center are updated with Acer's recommended drivers for my particular laptop. My video settings are already on "Balanced". The problem still exists, but I guess I'll just enjoy the game without "Fullscreen Mode" turned on.
I'm glad you are at least able to play the game, it may just be an oddity with your card or drivers that resolves itself later down the road. If we do come up with any fresh ideas on how to correct this I'll let you know.