Please Help Graphics Issue

Recently I reformatted my hard drive and reinstalled windows 7 64bit ultimate.

After installing the most up to date driver for my vid card and installing coh I find the game unplayable. At first my fps is perfectly fine but Whenever my character is moving every few seconds the screen seems to freeze for an instant. it makes playing kinda choppy... I am at a loss about what to do. I tried various things I read in the forums... my driver is up to date... I tried older drivers, I tried making such nothing else was running at startup. Nothing seems to work.

here's the infos I got from the coh helper program. I tried this even at the lowest graphics settings with no improvement to the issue. My card is an ATI Radeon 5770. If anyone can tell me how to fix this I would be ever so grateful.

---System information gathered by CoH Helper version 0.2.0.2---

DxDiag gathered at July 13, 2011 21:51 (-04:00)
Operating System: Windows 7 Ultimate 64-bit (6.1, Build 7601) Service Pack 1 (7601.win7sp1_gdr.110408-1631)
System Manufacturer: NVIDIA
System Model: NF66
BIOS: Phoenix - AwardBIOS v6.00PG
Central Processor: Intel(R) Core(TM)2 Duo CPU E6750 @ 2.66GHz (2 CPUs), ~2.7GHz
Memory: 4096MB
.Net Memory Report: 2806MB out of 4094MB available
Page File: 6545MB (1641MB currently in use)
C Drive: (WDC WD25 00KS-00MJB0 SCSI Disk Device) 124515MB out of 238472MB (52%) free
E Drive: (WD My Passport 071A USB Device) 315410MB out of 476911MB (66%) free
F Drive: (MagicISO Virtual DVD-ROM0000) zero-size drive
D Drive: (Memorex DVD+/-RW True8Xn ATA Device) zero-size drive
Windows directory location: C:\Windows
DirectX: DirectX 11
DirectX Diag version: 6.01.7601.17514 (64-bit version)

Display Notes: No problems found.
Sound Notes: No problems found.

No problems found.

No problems found.
Input Notes: No problems found.

Monitor:
Monitor's Max Resolution: (blank)
Video Device Name: ATI Radeon HD 5700 Series
Manufacturer / Chip: ATI Technologies Inc. / ATI display adapter (0x68B8)
Video Memory: 2805 MB
Driver Version: 8.861.0.0
Driver Date: 5/24/2011 11:06:38 PM
Driver Language: English

Sound Device Description: Speakers (Plantronics .Audio 646 DSP)
Driver File: USBAUDIO.sys
Driver Version: 6.01.7601.17514
Driver Date: 11/20/2010 11:23:47 PM

Sound Device Description: Realtek Digital Output (Realtek High Definition Audio)
Driver File: RTKVHD64.sys
Driver Version: 6.00.0001.6167
Driver Date: 7/28/2010 9:26:00 PM

Sound Device Description: Speakers (Realtek High Definition Audio)
Driver File: RTKVHD64.sys
Driver Version: 6.00.0001.6167
Driver Date: 7/28/2010 9:26:00 PM


WMI Information
Motherboard Manufacturer: EVGA
Motherboard Model: (empty)
Motherboard Product: NF66
Motherboard Version: 2
BIOS Manufacturer: Phoenix Technologies, LTD
BIOS Name: Phoenix - AwardBIOS v6.00PG
BIOS Version: Nvidia - 42302e31
BIOS Release: 20070711000000.000000+000


Registry Information for Current User
Resolution: 1596x848
3D Resolution: 1596x848 (Not using renderscale)
Full Screen: No
Maximized: Yes
Screen Position: 0, 0
Refresh Rate: 60Hz
Vertical Sync Enabled: Yes


Physics Quality: Medium
Maximum Particles: 50000
Max Particle Fill? 10.000
Physics Card Enabled: No


Anti-aliasing: 4x
Anisotropic Filtering: 4x
Texture LOD Bias: Smooth
Water Effects: Medium quality
Bloom: 1.000 (turned on)
Depth of Field Enabled: No
Desaturation Effects (Sepia) Enabled: Yes
Shader Detail: Medium?


World Texture Level: Very High
Character Texture Level: High
World Detail Level (Vis_Scale): 2.000
Entity Detail Level: 1.000
Shadows Enabled: No
Shadow Mode: Stencil shadows
Shadow Map Shader: Unknown (0)
Environmental Reflections: Disabled
Advanced Occlusion Settings: No
Ambient Occlusion: Off
Occlusion Strength: Off
Blur: Bilateral
Ambient Resolution: Performance


Gamma Correction: 1.000
Geometry Buffers (VBOs) Enabled: Yes
Suppression of FX When Camera Close Enabled: Yes
Close Suppression Range: 3.000
Show Advertisements: Yes

Audio Mode: Performance
3D Audio: No
FX Sound Volume: 0.496
Music Sound Volume: 0.292

Show Advanced Graphics Options: Yes
Overall Graphics Quality: 0.500
Reverse Mouse Buttons: No
Save Login Username: Yes
Transfer Rate: Unknown bytes/second
Current Game Version: 2050.201106290226.1.0
Installation Directory: C:\Program Files (x86)\NCsoft\City of Heroes

Mod files in the Data directory
.\Texts\English\Help has 1 file
.\texture_library\FX\FullscreenFX has 6 files
.\texture_library\GUI\HUD\Align_Status has 6 files
.\texture_library\GUI\HUD\LEAGUE\League_Archtype has 28 files
.\texture_library\GUI\HUD\Teamup has 1 file
.\texture_library\GUI\HUD\Tips has 18 files
.\texture_library\GUI\Icons\Archetype has 14 files
.\texture_library\GUI\Icons\Badges has 2 files
.\texture_library\GUI\Icons\Enhancements has 130 files
.\texture_library\GUI\Icons\Inspirations has 59 files
.\texture_library\GUI\Icons\Inspirations\Alternate s has 11 files
.\texture_library\GUI\Icons\Origin has 5 files
.\texture_library\GUI\Icons\Pet_Command has 12 files
.\texture_library\GUI\Icons\Pet_Command\ALTERNATE-1 has 6 files
.\texture_library\GUI\Icons\Powers has 1264 files
.\texture_library\GUI\Icons\Powers\ALTERNATE-1 has 32 files
.\texture_library\GUI\Icons\Powers\ALTERNATE-2 has 12 files
.\texture_library\GUI\Icons\Salvage has 6 files
.\texture_library\V_PLAYERS\AVATAR\Super_Shared\Em blem has 11 files
.\texture_library\WORLD\V_COV\Bases\Details\Decora tive_liquid\Baseliquid_Globes has 2 files
.\texture_library\WORLD\V_COV\Bases\Details\Functi onal\base_tele_arc_aux has 31 files
.\texture_library\WORLD\V_COV\Bases\Details\Functi onal\base_tele_aux has 1 file

There is a known issue with OpenGL rendering and the official 11.6 ATi Catalyst release. Please file a bug to AMD: http://www.amd.com/us/CatalystCrewSurvey

For the time being you will need to regress to a previous driver version, either 11.4 or 11.3.