Hey, Rohan, I have the EXACT same issue with my laptop. HP laptop Pavilion G6, 2006-tx, except the fact that it uses Radeon rather than nvidia. I know this thread is rather old, but any updates on the issue? I'm afraid the GPU may be damaged and I'm out of warranty too. :/
I'll try the Ram swapping and see if it works. Also, I can use the laptop without the AMD Drivers on the Standard VGA Graphics Adapter. (Have been doing so for a month) and it is real annoying as Aero, Unity, Premiere, etc don't work, battery drain is real high and the laptop's fans scream pretty often. I don't think the GPU on this laptop can be swapped. Thus, it's gonna cost me a motherboard replacement. :o
Is there anything I can do?
When I install the drivers and reboot, the mouse icon appears and has lines on it or weird things around it and then a bluescreen appears. Usually this error and sometimes SYSTEM_SERVICE_EXCEPTION.