Sounds like you have a bad driver.
Many times, when you do Windows Update, it will try to install a new video driver. I always tell people to turn off video driver updates, and to never do it. Most of the time, it tries to put in a "generic" driver, and this can often cause problems.
Try going to the video card manufacturer's website and get a new driver directly from them. If you know the exact GPU on the card, you can also go to either NVidia or ATI and download one from there.
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