|LCD or CRT? Video Card?|
Do you have another monitor you could test with? Another computer (even a laptop)? That would help determine if the issue is with your monitor or your graphics card. I suspect that the issue is either with a dying monitor, or a dying video card, either way i doubt a simple driver update will resolve your issue, and you will need new hardware.
if your computer has onboard graphics as well as an addin card, you could try plugging the monitor into the onboard graphics to see if the issue persists, too.