Blue Lines and Blue Screens

I just upgraded to Vista32 sp2 and while it was installing, my graphics card seems to have crapped out on me (I am 85% sure that the two things are unrelated).

When I got to the boot screen, several vertical blue lines appeared. Before I could wrap my mind around what I was looking at, I got a blue screen of death and my computer rebooted. After several attempts at restoring my system while in safe mode, I decided to simply uninstall my video card driver.

This seemed to allow me past the blue screen of death and access windows normally. I am not sure whether or not windows is using my motherboard for graphics or my graphics card w/o drivers.

I then tried to reinstall the drivers and ran into the blue lines and blue screens again.

I have a Sony Vaio laptop VGN-FZ260E
Nvidia Geforce 8400M GT
Vista32 sp2
The driver is the one that originally came with the computer dated 10/2007 (Sony for some reason does not allow me to update it )

Can anyone please help me with a solution that does not involve getting a new computer (i hear replacing the graphics card on a laptop is a good way to lose money)

Thanks