This is not really game related in the most part but i couldn't see anywhere else to address this, anyway... on with my issue, and i hope somebody has any suggestions that could help me.

Graphics Card
Sapphire HD 7750 Ultimate 1024MB GDDR5 PCI-Express Graphics Card [11202-03-40G]
NOT overclocked

AMD Catalyst Driver Version, and Driver History
Catalyst™ Control Center Version 12.8 2012.0727.2122.36516
No other version tested

Operating System
Windows XP SP3 32bit

Applications and Games
Geovision CCTV software v8.3.0.0
Civilization V + G&K

Issue Details
With nothing but the Geovision CCTV software running on the system the framerate is a little jittery.  Then, With the Geovision CCTV software still running, and I watch a movie with VLC v2.0.5 (and older versions), the CCTV software will struggle to keep a steady framerate. Occasionally it would display nothing until the moment I exit from VLC.

Occasionally in Civilization V there would be laser graphics appearing randomly, I believe this issue is quite common since their recent patch in Nov 12. I have only tested this on maximum settings in Civ V.

 
Additional Details
system is clean of viruses, spyware, etc..
With a Sapphire ATI X1650 overclocked (legacy driver v10.2) the PC has ran perfect since 2008 and none of the above problems exist. This card will run the CCTV, DVBDream outputting digital radio and still play 3D games such as MOH Black Ops and Civ V at the same time over 2 monitors with no issues.

 

Motherboard
ASUS P5K

Power Supply
Seasonic SS-550RM
3V & 5V = 100W
12V = 540W
techpowerup review with specs - http://www.techpowerup.com/reviews/Seasonic/G550/

Display Device(s) and Connection(s) Used
Philips 190CW running at native 1440x900 60hz
vga to DVI adapter supplied with graphics card

CPU Details
Intel Core Duo E8400 @ 3.0Ghz

Motherboard BIOS Version
ASUS BIOS 1208

System Memory Type & Amount
DIMM1: Kingston 2G-UDIMM
DIMM2: Kingston KTC1G-UDIMM
DIMM3: Kingston 2G-UDIMM
DIMM4: Kingston KTC1G-UDIMM

Additional Hardware
Geovision GV604(S) Video Capture Card
Hauppauge WinTV-HVR 67xxx Capture Device
Generic USB CF Reader USB Device
Generic USB MS Reader USB Device
Generic USB SD Reader USB Device
Generic USB SM Reader USB Device
Romex RAM-DISK SCSI Device (used for tmp & temporary internet files)
Seagate ST2000DM001-9YN164 (SATA, IDE mode)
Seagate ST31000340AS (SATA, IDE mode)
Seagate ST31000528AS (SATA, IDE mode)
Seagate ST332062 0AS (eSata, AHCI mode)
Seagate ST3500418AS (SATA, IDE mode)
TSSTcorp CDDVDW SH-S202N SCSI CdRom Device
Case fans = 1x 120mm front fan, 1x 250mm side casing fan

Any help is much appreciated.

When you pulled the antique and put in the 7750, did you do a clean driver install using DriverSweeper/Driver Cleaner or did you just use Add Remove Programs?

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Crosshair IV Formula, Phenom II x4 965 w/ Corsair H60, 8 GiB OCZ Platinum DDR3 1600, XFX HD 7970 Ghz, 512GB Vertex 4, 256GB Vector, 240GB Agility 3, Creative X-Fi Titanium w/ Creative Gigaworks S750, SeaSonic X750, HP ZR2440w, Win 7 Ultimate x64

I really made sure I cleaned my system of everything ATI related.

I first uninstalled all ATI software that shows up in Add/Remove programs by using Revo Uninstaller.

Then I deleted all ATI entries in the C:\Windows\Assembly folder.

Then I used Windows Installer Cleanup to get rid of more ATI, CCC software.

Then I went into the registry and removed lots more left over ATI entries.

I then removed any ATI folders left on the C:\ drive.

Also I used CCleaner to clear more ATI related entries.

Not finished yet...

One particular folder wouldn't go without a fight (Core-Static) so I searched the registry for links to files in that folder and removed them.

Next up was a reboot and I now was able to remove the core-static folder.

Ok, now that bit was over I decided to re-install the CCC v10.2 to see if it would cleanly uninstall everything I removed earlier but using its own uninstaller this time. I checked everywhere and sure enough it did! 

So now I was confident enough to know that once I install my new card the new CCC 12.8 would go in successfully. I believe it did.

So the answer is no, you didn't use DriverCleaner or Driver Sweeper. And we don't know if you're using the latest BIOS on your motherboard. And we don't know if it is an issue with 12.8 with you because you haven't tried any others. And we don't know if it is just an issue with antique Windows XP because you haven't even tried setting up an additional partition and doing a clean install...Try those.

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Crosshair IV Formula, Phenom II x4 965 w/ Corsair H60, 8 GiB OCZ Platinum DDR3 1600, XFX HD 7970 Ghz, 512GB Vertex 4, 256GB Vector, 240GB Agility 3, Creative X-Fi Titanium w/ Creative Gigaworks S750, SeaSonic X750, HP ZR2440w, Win 7 Ultimate x64

given the mess, probably be an idea to simply backup and install windows fresh

 

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Corsair Carbide 300R, TX850V2, Asus M5A99FX PRO R2.0, Phenom II 965 C3 BE, G.SKILL RipjawsX DDR3-2133 8 GB, GTX 260 SLI, Asus PA238QR, Windows 7 x64 Enterprise

Asus M4A77D, Athlon64 X2 4200+, DDR2-800 6 GB, HD 5450, cheap 450W, Server 2012

I could have answered with a yes or no but thought I'd say what I did do to remove the older driver.

That is the latest bios for my motherboard. Off the top of my head I think it's a 2007 bios.

It's a good point but how far back would you suggest? Sapphire website has 12.6 and the CD that came with the card has 12.4. They all support my ancient System so, do you know if there are known bugs that address issues or causes them in these versions?

That's a bit harsh!  I did my best to post as much as I thought relevant and you only needed to ask if you need more info to try help me. NOT jump down my throat with that. I remember an unliked teacher speaking like that over 30 years ago.

I'm not sure it's drastic enough that only a reinstall will cure it.  There is far too much software in daily use to warrant the time to reinstall everything.

Maybe it's time to move the CCTV to a dedicated PC, which is what I was going to do eventually anyway.