Interface problem with 3.4 after hardware upgrade

[Dudaman]

I just upgraded the video card in my BeyondTV machine. I went from an ATI 7000 to and ATI 9550. Along with the hardware upgrage came an annoying problem with BeyondTV. Any menu that is (or can be) transparent displays incorrectly. By this I mean that there is a faded black checkerboard filling in the transparent areas. The menu is transparent as well as the black portions of the checkerboard. In addition to the checkerboard, the video that plays in BeyondTV seems wrong. It looks like there are decoding artifacts and it looks a little washed out. I should also mention this problem occures in both fullscreen and windowed mode. Here are the steps I've done so far:

1) Re-installed the latest version of the Catalyist drivers (v4.9).
2) Upgraded to DirectX 9.0c (I even reinstalled this in the event the upgrade wasn't legit.)
3) Tried almost every possible combination of settings in BeyondTV (Overlay vs. Hardware, No Deinterlacing vs. Deinterlacing)
4) Upgraded the chipset drivers for my motherboard

Concerning the video playback, if I play a DVD or even the BeyondTV recorded files from Windows (not inside BeyondTV) they play fine and dandy. I've even verified that the proper codecs are being used to decode the video playback.

I've searched high and low on the internet as well as this forum and I was not able to find anything remotely similar this this problem. I am leaning tward this being a DirectX issue. Does anyone have any ideas on what I should try next? Should I try an older version of the Catalyist drivers? Is there a setting in the Direct3D part of the video card setup that I should change? I'd rather not return the video card to the store as everything else on it works except this little transpart menu issue.

My setup:
Win2k SP4 (all hotfixes)
Asus P4P8X motherboard
ATI Radeon 9550
Using S-Video out to a regular TV.
BeyondTV 3.4 Build 1334

Thanks,
Chris