Satellite L850 - external 1080p display problems

I had been running my Satellite L850 laptop via HDMI to an external monitor without problem for many months.
A couple of weeks ago I attempted to update the catalyst driver and have had problems ever since.
Basically now when I select 1080p mode via the catalyst control panel it makes the screen flash and have vertical lines.
Occasionally it will work for a short period, even up to an entire day and than it will randomly start again. I can play a game in 1080p mode and it will be totally random, sometimes allowing me to play for hours without having the black screen flashes whilst other times it will flash constantly and the only way to resolve is to either restart or pull out the HDMI cable and plug back in and cross your fingers you have enough time to reopen catalyst and change to 720P which is always stable.
I have tried:
1. Using the AMD Catalyst removal tool and reinstalling via the original factory default Toshiba catalyst drivers
2. Using System Restore to go back before I made the changes
3. Using the AMD Catalyst removal tool and updating to the newest version via AMD website.
4. Reinstalling my chipset drivers along with #1
5. Tried a different monitor (still happens)
On a side note every time I use the removal tool it removes my USB drivers also and I have to reinstall.
The current graphics driver is AMD Radeon HD 7670M and I have also tried the solution on the tech support forum here http://www.mytoshiba.com.au/support/item/781.
I have run out of options other than a complete format and reinstall which I want to avoid if possible. Any suggestions would be greatly appreciated.
Thanks in advance

Probably your problem has nothing to do with the picture issue mentioned in the technical document posted by MisterX.
I could read in your first post above, that this issue appeared exactly after the driver update.
> A couple of weeks ago I attempted to update the catalyst driver and have had problems ever since.
Are you 100% sure that the display driver update has caused this problem?
You have also mentioned that this issue does not appear always but sporadically and every once in a while.
From my point of few there are some open questions:
1) Is it really an graphic card driver problem or maybe an GPU issue?
If the issue did not appear in the past (before the GPU driver update) then yes: it could be related to the driver.
2) The notebook support also an Intel HD graphic card (its part of the Intel CPU)
I think you should check if the same issue would appear using the Intel GPU.
Try to uninstall the AMD driver (from device manager as well as from programs & features are within the control panel) and test it using Intel GPU only.
3) Last but not least test the notebooks video output with fresh recovered notebook. After the recovery the graphic card driver should be the same which you have used before the update.

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Thank you very much friend. :)

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