Most modern PCs need up to 4 drivers installed in sequence for the video card to function properly.
AGP mini-port driver for the motherboard / chipset
DirectX (from Microsoft) at least the lowest version required by the video card mfg.
The actual video card driver.
The monitor driver, if the monitor is not listed in the standard types.
Other things to check:
Any leftover files, system settings, or registry keys from the old card?
The best way to swap cards, is to remove the card from device manager, and check add/remove software for any utilities left behind.
You can also run sysedit, or msconfig to look for old driver statements.
Download the latest drivers from ATI.
The driver on the CD may be months old.
Check for updates to the video card BIOS.
Check the size of the AGP apperature in BIOS settings.
I recommend a minimum of 2X video RAM, up to 1/2 system RAM.
Chas