Catalyst 8.4 is the latest driver for the Mobility Radeon X300. To update/reinstall, go to Start > Control Panel > System > Hardware tab > Device Manager. Click the [+] next to Display Adapters, right click the graphics card entry and select Uninstall.
Reboot and keep tapping F8 while the computer is starting until you see the Advanced Options menu. Select VGA mode. When Windows has finished loading, the display will look strange. This is only temporary while using the standard VGA driver. Disable your antivirus and install the new driver. Reboot to complete.
Download and install the latest
DirectX 9.0c (March'08), reboot and go to Start > Run > dxdiag > Display tab and run the 2 tests.
Note: The reboots after each step are very important.