Looks like the new drivers are not installing for you. You talked of using "driver cleaner". Did you go to "Add/Remove programs" and remove the ATI control panel first and then the ATI drivers? Have you tried downloading the drivers again just in case the first download was corrupted? The 640x480 at 16 color is a sure sign that you are running on basic video drivers and not the ATI drivers.
I guess I may next move would be to make sure there are no signs of anything about the ATI drivers or control panel in the "Add/Remove Programs" area. If there is remove the ATI stuff from there first. Go here
http://www.drivercleaner.net/ and download the pro version (free). Read and follow the direction for this program. Do not run the drive uninstall from regular Windows. This will clean out any trapped or left over ATI driver files in your system. After rebooting, you will be back at the 640x480@16 color display. Now run the ATI driver install and the ATI Control Panel install. Make sure the drivers are for your operating system and the 9600 pro card before installing.
Last, if you still have problem you can try the fourm board over at
http://www.rage3d.com/ as that site is all about ATI stuff. I have an ATI 9600XT and have not had this problem like you are having. I have had problems something like this with on board sound and XP trying to install drivers that XP thinks it should. Do not let XP install anything with the video when you reboot. Get to the desktop with the basic 640x480x16 drivers and then run the ATI install. The only way to get the sound problem I had fixed was to the program from the above site and keeping XP from installing anything when I rebooted the system. That let me install the proper drivers.
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