That's really odd! I mean, that ATI card is really recent one, does not it?
I think you may need to first update the drivers...
http://support.amd.com/us/Pages/AMDSupportHub.aspx
(Choose your card and your operating system. Download and install the driver there)
Then, you may need to do DirectX Diagnosis by press
Windows Sign + R and type
dxdiag and press Enter. There should be no problem if your card works fine...
I find it rather odd to get that error with that video card it's not like really old video cards (e.g. ATI Radeon 9000 per say...)
Sincerely, Pan2011 ~ Pan2012 (May 5th, 2012)