I’ve had this on a Server 2008 Installation, after I swapped it for an Nvidia card. Though properly uninstalled the Nvidia-driver and cleaned, Windows started up with your error-message, the ATI basic wizard hung up with 100%CPU, I got into the CCC with twice loading the advanced CCC, and then only 2 items of the configuration list were showing up (information-manager, display manager) not letting me do anything with 3D or video configuration.
Though I don’t think that Nvidia driver installation has anything to do with it, as I’ve got a couple of ASP.net errors, and decided to deinstall the NETFramework 3.0 feature through the server-manager. But no deinstall reinstall procedure got me a working CCC.
I’ve reinstalled Win2008 without .NETFramework 3.0 feature, then installed Intel chipset drivers, then Radeon 8.3 Hotfix and got a fully working CCC now.
I’d stay away from .net-framework updates, (especially the 3.0 feature, you have to manually install) and it will work.