try to remove the display drivers and specify standard VGA as device and then restart WinXP. Then run the Uninstall from ATI again and then install the updated drivers again (including MMC) and restart. This should work.
Normally when I update my ATI drivers I run the Uninstall and then reboot first which takes the drivers out of play and the new install does not have problems replacing them later as they are now not being used anymore...
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