Well, as a last try I found solution working for me. So easy and obvious.
I uninstalled driver in safe mode, restarted, UPGRADED BIOS to last version at intel website, after finishing I installed latest Win 7 64bit driver from intel website. That's it.
This is the first time for me, that upgrading bios made any visible enhancement.
Aero is working, but it's quite slow and shows some errors like some flickering icons now and then. But still not bad with 512MB RAM and 4200rpm harddrive.
Folks, this is a genuine problem. Chatted with intel support and they claim they are unaware of it. I too have the problem and still looking for a solution. I have reverted to XP to make use of all the drivers. Those "work-arounds" i've seen forum persons doing is not a good idea mixing 64 bit drivers with 32 bit OS and vice versa. Hopefully INTEL will see this discussion and fix the problem.
I too had the same problem with my GMA 950 but I fixed it by installing Vista 64 bit driver. I have MSI Wind Nettop 100 with GMA 950 graphics and Atom 330 dualcore processor. I recently clean installed Windows Server 2008 R2 and noticed few problems related to the display when I installed Win 7 64 bit drivers for GMA 950. As I couldn't find the Windows Server 2008 R2 driver in Intel's website, I chose the closest one, Windows 7 64 bit drivers. These are the problems that I faced with Win 7 64 bit drivers for GMA 950:
1: My Logitech Pro 9000 webcam didn't work with applications like Skype and Adobe Flash.
2: HD playback using Media Player Classic with Broadcom Crystal HD decoder, crashed the entier system and gave blue screen of death.
3. Internet Explorer 8 would flicker a lot after installing Adobe Flash player.
I am pretty sure these 3 problems are Win7 64 bit driver related, because these problems went away after I installed Vista 64 bit drivers. I still have few minor problems with Vista 64 bit drivers but I can live with them for now.
I hope intel soon fixes the Win7 64 bit drivers for GMA 950.
I know this is a rather old (and quite possibly dead) thread, but I think I found the root of the issue, and a way to fix it.
This started with me wanting to test Windows 2008 R2 (which is based off Windows 7 x64, for those of you who don't know already) on my D945GCLF board. Everything went fine, until I noticed that dreaded "code 43" error.
I found this thread through Google, and tried all the fixes suggested. None of them worked. So now I had a great OS on a tiny little cube case with sub-30'' boot time... without a working VGA driver, which basically clamps the performance to no end... I actually need 2K8 R2 for what I want to do (RRAS + Connectify, which is not possible with W7, which lacks RRAS), so I was feeling kind of low.
Then I remembered: I basically fiddled with EVERY BIOS option to optimize boot times and available memory as much as possible. So, maybe there was something there causing the error. And turns out, there is. Apparently, 2K8 R2 (and I assume W7 x64) isn't satisfied with only an allocation of only 32MB (fixed) to the IGP framebuffer. So, just to be sure, I set it to DVMT mode and maximum DVMT, with an aperture size of 256MB. A quick reboot later and voilá, fully working GMA950 driver.
Right now, without Aero enabled and just sitting at the desktop @768p (screen's native resolution), 64MB are reserved for the IGP framebuffer, so I'm assuming that's the bare minimum you can set on the BIOS if you want to have the driver working.
Hope this helps someone else in the future.