new ATI Catalyst Drivers (2.5)
http://mirror.ati.com/support/drivers/winxp/radeonnowdm-xp.html?cboOS=Windows+XP&cboProducts=RADEON+8500&eula=&choice=agree&cmdNext=NextFixed in this driver:
Display Driver
The RADEON™ 9700, RADEON™9500, RADEON™ 9000, and RADEON™ 8500 series no longer experience slow downs when moving WINAMP windows around the display area
The system display panel no longer shows the incorrect ATI driver version after installing a secondary ATI card when using a multi monitor configuration
Running the 3DMark2001 Lobby test on RADEON™ 7000 card no longer suffers from display corruption (specifically found in Max Payne's glasses)
Display corruption is no longer found when playing the game Revolt
Running multiple 3DLab demos under Windows 2000 or XP when using a RADEON™ 9000 Pro will no longer result in a system hang
the link
btw, the link above is for a radeon 8500 (downloaded it for a friend), use the "find a driver" link for your model.