Is it possible for a monitor to crash a graphics card?

The solution was:

After performing a CC Clean of the drivers (back to Windows default, all folders removed etc), I used the Catalyst Control Center driver update tool to check for the best driver and download it. Problem persisted. CC Clean again.

For fun, I then used Windows Driver Update (Control Panel->Devices->Display Driver->Properties->Update Driver) and that downloaded a different version of the driver - which is actually the latest.

Cause

The ATI Control Centre driver check update tool was not downloading the latest driver for my card, it was downloading the previous one. Have raised a bug report with the ATI CC team.

Thank you everyone for your help, I am somewhat flabbergasted that the Windows Driver Update would get a newer version than the ATI CC tool.

I suppose it is possible a monitor could cause a crash with a driver, but its very unlikely. Most graphics problems are driver and graphics card hardware issues.

Obviously, the first thing to try would be a different monitor. If you still have issues with a different monitor, then its the card or driver. If the problem cleared up (which I highly doubt), then it would be the monitor.

You said you are using the most up to date driver. Newer isnt always better. Its not uncommon for newer drivers to introduce bugs. Try downloading and installing an older driver, preferably one that has WHQL certification.

Check the cards temperature. Perhaps its overheating. If possible test the graphics card in another machine. Perhaps it isnt getting enough power or airflow.

PS:

I also want to add that you said you see artifacts. Artifacts are commonly due to a card overheating and/or failing. Since the card was supposedly tested, then it sounds like overheating.