Hello FT-Sprite, welcome to the Intel communities and thanks a lot for posting your inquire.
According to the graphics team the latest graphics driver included a fix related to flickering.
I would recommend installing the latest graphics driver version 3621. You will be able to find it at the following URL
Regarding the issue that your system is detecting Windows 8 instead of Windows 7, this seems to be a registry issue. You can try forcing the system by the installation of the drivers by performing manual procedure, see here for instructions: Graphics Drivers — Computer manufacturer graphics driver detected
If it does not work it will be necessary to re install the operating system.
I THINK the issue has been resolved now, thanks Sylvia. Had some issues installing that HD Graphics driver, first time it caused a BSOD, then second time it worked. Went on to flash BIOS with the newest patch, and it looks like the issue is gone... For now at least.
Thanks for letting me know FT-Sprite.