I'm very familiar with that error, I fought with it for a full year, and atidvag2 may not actually be the problem at all, since Nvidia cards will produce a similar error message under the same conditions. If you go into event viewer you should find a critical error message, saying something about an infinite loop which could be caused by drivers or hardware.
The problem is there are so many causes for it that it may even not be the graphics card at all. It's as if it's just a combination of hardware that leads to bad communication, which results in an infinite loop.
I mean I swapped motherboards, ram, graphics card, eventually the CPU even. Seemed I always had a bad combo, no matter what I did. It's a very (and I mean VERY by all the reports I've seen) common issue that is more about hardware than it is software, people blame ATI drivers but they don't see that Nvidia gets the exact same problem, with it showing their drivers as the issue.
People have speculated on so many causes, but ultimately the only way you will solve it is to eliminate things one at a time, try different drivers first and you might be lucky and it goes away. If not check your ram, stress test your CPU, stress test your GPU, check temps all round. Then even if nothing shows up, something is still wrong, and you have to start swapping parts.