Problem description:

HD 7000 graphics show random flickering in games or applications in DirectX 9, but not DX10 or higher. Flickering is not as random as it may see, because its more often in some game locations, or under some circumstances.

Probable Root cause:

Direct 3d 9EX 
http://en.wikipedia.org/wiki/Microsoft_Direct3D  - check for details.

Especially this:
"Direct3D 9Ex, in conjunction with DirectX 9 class WDDM drivers allows graphics memory to be virtualized and paged out to system memory, allows graphics operations to be interrupted and scheduled and allow DirectX surfaces to be shared across processes"

Games reported and to be easily tested:

a) Witcher 2, Forest in Chapter 1
b) Civilization 4
c) Skyrim - skin flickering when the body fades out (camera close up)

 Non gaming reports of flickering

e). Flickering of Windows Aero on 120Hz
http://www.youtube.com/watch?v=7jHkmSNwXRo

Status: Reported, to be reproduced 
 Notes: Windows Aero uses DX9 EX, and probably is Vsynced by default. Higher refresh rate, and flicker may be explained by next report.

f). Hardware instancing problem
http://devgurus.amd.com/thread/159666
Status: Dev to be contacted for additional information


Additional reports:
a) Issue seems to be present only on Windows 7 or Vista (maybe 8), and only in games which use Direct3d 9.

Status: To be verified 
Verification: I will install Win XP on other harddisk I have here with same hardware and I try to play games mentioned above and re-create problem with refresh rate
Expected result: Games will not flicker, thefore "native" Direct3d 9 is not affected.

b) According to other reports the issue changes, depending on used driver version, and can be supressed by manual changes in Antialiasing methods. 

Status: Verified
Witcher 2 does not flicker with Catalyst 12.4 and flickering is more visible in later drivers.
For some games exists workaround when Vsync is turned on, or when Supersample antialiasing X4 is forced from catalyst.

Current theory:
Direct 3d 9EX and full access to WDDM standard driver cause flickering with HD 7000.  Games or aplication which follow the Direct3d standards may be affected by minor incompatibilites and differences between native Direct3d 9 and Direct3d 9EX. 

Following actions:

a) Games which confirmed flickering will be re-tested on WinXP
b) 120Hz flickering in Win Aero will be reproduced.

Questions for AMD:
a) Are there any new methods on driver level towards Direct3d 9 which were not present with previous graphic cards, and are not present in XP version of the driver?
b) Is there any way how can user disable paging of the graphic memory?
c) Is it possible to install XP driver on Win7 for testing purposes?


Will be updated...

Xeon X3360, Asus Rampage, Gigabyte HD 7970OC, Corsair HX-650