I'm using a similar card (Ati Xpress 1250) as you master puppet, and have the same problem. While I certainly suggest you try everything yarlson said (sometimes the smallest differences will cause something to work or not work after all), I can say none of that worked for me.
Also, while 11.2 is the latest driver, your card is a legacy card, and the last update ati released for legacy cards such as ours is 10.2. 11.2 is useable with the mobility modder, but in any case, neither driver got Aali's driver working on my system.
So, if nothing else works, I'd recommend you use 0.7.8 or 0.7.9, depending on your needs. If you want to use battle graphics mods, you'll have to use 7.9, but texture compression was disabled for certain things in that release, which may cause any area of the game using field or battle enhancement mods to load slowly. 7.8 still allows texture compression, which allows field areas to load much faster after the first time they've been loaded, but custom battle textures won't load due to the way that version was programed (not sure if it was a glitch or just something that wasn't a priority for implementing at the time). At least, this holds true for the mods using pngs, battle mods that use the lpg files work fine in 7.8 as far as I know.
Also, on 7.8, texture compression works fine, and on 7.8 and 7.9 the normal shaders work fine (as long as you use the nolight shaders for 7.9). So I'm pretty sure it's a different issue in 7.10, and I think I read Aali commenting that he broke support for some Ati cards in 7.10 awhile back, but don't quote me on that. I've been flipping between 7.9 and 7.8, depending on what I want, but I mostly use 7.8 since I really like faster loading times.
Probably not what you wanted to hear, but hope it helps. Good luck.
Also, my specs in case it might help with fixing the problem:
AMD Athlon 64 x2 1.9 GHz
ATI Xpress 1250
3 GB RAM