I think brando is right.
I don't know much about ATI-settings and the CCC, but if you look at your screenshots, it says:
"Graphicsadapters: 1. HD 3600 Series..."
Yet you have a X1950.
You got the wrong drivers installed. Remove them, use DriverCleanerPro (Freeware) to remove the settings and install Catalyst 7.1 drivers and test it again.
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