Go back to an older driver? They probably changed something around and in fact using the latest driver is the wrong strategy here. After all, CS3 is not the latest and I doubt they give it much thought in their newer drivers...
I tried to roll back to catalyst to various previous versions:
However, that doesn't seem to help.
From the Catalyst 11.2, I can see I am running with OpenGL 6.1xxxx
Any other suggestions? Because my photoshop is also experiencing some problem when I use the vanishing point option.....
This sounds like a question for ATI Tech Support, I think.
I understand this is annoying, but in terms of Open GL and AE, you can consider it a blessing in disguise. AE can only render a subset of Open GL, and it's very difficult to put together an AE comp that uses only those effects that work under Open GL. When rendering, Open GL rarely helps and often hurts.