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There is a post about this type of problem that's stickied here.. if not it's def. in the first page or two of the technical support forum.
(following is pasted from technical support page on battle.net, http://us.battle.net/support/en/blog/5367451)
AMD Catalyst Driver Version 12.4
Windows Vista and 7 users with AMD Radeon HD 2400, 2600, 2900, 3400, 3600, and 4500 video cards who have updated to the Catalyst 12.4 driver set may receive errors or graphical distortion in Diablo III. To address the issue, we recommend that affected users download and install the Catalyst 12.4a Hotfix Driver available on AMD.com.
Note: Windows XP users with the above cards and players with ATI Radeon HD 5000, 6000, or 7000 series cards are not affected by this issue.
(end pasted section)
is where the hotfix is on AMD's site.
The hotfix driver may or may not fix the issue.
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