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Try changing in the BIOS the amount of memory allocated to the video. The default is 64MB which is rather low. I set mine to 512MB. I built a similar hardware box over the holidays. One thing I found was you must install service pack 1 of Windows 7 before installing the Intel graphics driver. If you don't do this the video will be very unstable and get BSODs on startup.
Thanks for the reply. I can't try your suggestion yet as I am away from home but will definitely do so when I return. Unfortunately I am unable to install any OS at all at the moment as the computer always crashes after about five minutes.