This is a common error on windows 7 computers using a AMD Athlon Display driver. I looked for a resolution for this problem myself and well got lost in all the well meant resolutions, tried them but did not get a resolution.
Now I fixed it and want to share this to resolve your problem with it too.
Problem; pc not responding, screen 'resets' (goes black for a second) and then the message appears "AMD driver was not responding" (dutch: AMD driver reageerde niet meer en is hersteld)
This problem was fixed by doing the following;
Open the ATI configuration, graphics configuration (ATI icon in task bar)
Select graphics in the upper menu, then powerplay.
De-select powerplay (so it is off).
That is it, no more freezes no more black screens!
