Reinstalling drivers doesn't help. Uninstalling SP1 does, however. I did find that I could make the TV application work if I disabled my secondary monitor. Now ATI wants me to rip out all of my cards, leave in the PCI video card (Xpert128), then add in the AGP card, then the other cards. Since I've already banished SP1, I don't want to go through all the hassle for what I already know is a software bug that won't be solved by anything I do. I think the real purpose of ATI's exercise is to get me to go away ;-)
They need new drivers for the AIW128 (extremely unlikely given they haven't updated these drivers in a year) or an update for SP1 that addresses that issue.