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.