AMD has just released a hotfix that will fix issues with Catalyst version 7.9 or higher in combination with AGP graphics cards. This Catalyst version 8.4 Hotfix is available for both Windows XP (32-bit and 64-bit) and Windows Vista (32-bit and 64-bit) Operating Sysytems.
The fix deals with errors with Direct X based games where Direct3D fails to initialize, Direct X Diagnostic test which fails in both Microsoft XP and Microsoft Vista and a fix for Microsoft Vista score that magically drops to 1.0 in this combination.

The new hotfix supports all the AGP cards from the ATi 9500 series, all the way to AMD HD 3850 AGP series graphics cards, like the one we tested. So, if you are still using an AGP-based system, you can find the hotfix here.