I have found a solution for this problem.
The latest ATI drivers DO work, it's just a matter of getting them on your system.
The driver version you need is: 6.14.10.6436
Even 6.14.10.6430 does not work - it must be this version which is the latest.
I got it to work by downloading the driver only from the "dial up" download section of the 9600 drivers.
Then you need to go into device manager and update the driver for the video card manually.
When selecting driver go to "Have Disk" and browse to wherever the downloaded file was extracted to on your hard drive.
Technically this is not the correct driver as it is not specific to the mobility radeon in my ASUS and i had to select a 128mb card driver even though mine is only 64.
However, it works, and i'm happy

)
Hope this helps you others out.
Mark