I think you mean 7.3, no? The latest cat drivers for ATI are 7.5's.
I'm useing the 7.3's with my X1650 pro, and have no graphical glitches at all. The flickering is an issue that is seen by many who own both ATI, and Nvidia. I don't think there is a definite answer to that one. There also was a seperate thread a while ago dealing with the "Flickering Textures" issue. Do a forum search, and you may be able to dig it up.
Another thought: Did you completly remove all traces of your old graphics driver befor installing the new? Since you had a different brand card, any trace of that old driver may play havoc with a new driver of another brand.
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