Originally posted by: -rascal- I'm just thinking...
Have you installed the latest BIOS, chipset drivers, and USB controller drivers, etc etc already?
If not, do that first THEN update the graphics drivers.
This was what I did when I was setting up my recent APU build, and it's running 100%...as I type this.
You know what I haven't. But I will do it anyway. Thanks for the idea.
However I did manage to fix the issue, but I wasn't able to figure out what the problem was.
What I did is install every driver except the video drivers. I also installed all the windows 7 updates. Among them was an AMD update. After all the updates I tried installing the video drivers again and Windows 7 did not hang anymore and the driver worked fine. We ran SWOTOR and Skyrim and they played well. To our dismay though, the HDMI port was malfunctioning as it never displayed anything on screen and it kept connecting and disconnecting. Unfortunately his 56" TV did not have a DVI or PC input.
Fortunately I had an old Radeon HD 4870 1GB laying around and I had a DVI to HDMI adapter and BOOM! It all finally worked. He got his solution and I made 100 bucks 
At the end of the day I still don't know exactly what caused the issues. For the video drivers I can only assume it was a Windows 7 issue that needed to be fixed through windows update before installing the actual video drivers. As for the HDMI, I can only assume it was faulty.
Thanks for the help you guys 
P.S. Rascal, the Lancer is one of my favorite cars 