Give it a try with the latest drivers form the Intel site on the following link.
Select Windows 7 64 bit and the then the Intel HD graphics drivers :
if the problem continues try a bios update to the latest version.
sir i have also tried these methods many times. i have updated latest graphics driver from intel site dated 16-aug-2011 version and flashed it with a latest bios update recommended by intel customer care person who give me the link through chat.i constantly tries to install the driver but it shows same error everytime.i am updating my windows 7 regularly through automatic windows update.the system runs fine with windows 7 vga driver.i am attaching images so that you get a peek at the problem.
and i am sincerely sorry for my late reply.
We had the exact same problem on out Dell Optiplex 790.
After investigating for many days, it turned out that the RAM modules were faulty (even though various memory test programs reported that the RAM was working fine)
We suspected the RAM modules when we stumbled across this forum post: http://communities.intel.com/thread/26159
my intel i5 2310 has a motherboard dh61ww and after purchasing the desktop was ok, but after 10 months motherboard working off and intel replaces another board but from then my graphics problem arises, the whole screen are flickering continusly if the intel HD video driver installed. when it uninstalled the rate of flickering is low, but after chatting from intel persons all the drivers are upto date. Now no video is run correctly, no application which uses screen resolution like google earth, or another not running in my computer. i think this motherboard is not good, but how local kolkata intel gives it to customer?
processor intel i5 2319 second generation
ram 8 GB
OS Windows 7 64 bit
Service pack up-to-date
i have the same issue. is it gonna be ok if i connect a separate VGA card?