mobility 320m - hp evo 1015 laptop

whether trying to install hp sp27665 drivers or catalyst 6-11 wdm38185 i get
an error message saying "error .nf cannot find driver" "try installing vga
and running again."

before that it mentioned .net 2.0 required. so i installed all updates.
still no .net. so tried custom updates. had choice of 1.1.2.0 or 3.3.net.
went for 2.0.

tried reinstalling and no go. tried uninstalling drivers but no effect to
restart. one restart and ati detected. said no for looking for drivers and
the vga held. ran 6-11 again and the sp7665 and no luck. still suggesting
install from vga and driver missing. windows itself has loaded driver dated
5/3/2006 version 8.252.0.0

The problem i'm having is that any kind of movie mpg, wmv or dvd using nero
showtime, media player 11 or cyberlink power dvd all lock up the machine
rather than play both laptop monitor and external monitor goes blank. or
else everything locks up even task manager. or the whole laptop reboots.

So first things first. wots wrong or missing that causes the error message?
is it related to the video problem?