Contact ATI about help on instaling their drivers... Though it would help if you gave us the exact error...
Part of the drivers is the ATI control center, in here you can change it so games do not stretch in full screen mode.
I doubt contacting ATI would help... The error I'm getting says something like "the driver is incompatible with hardware or operating system".
It can't be incompatible with OS because its just a clean install of XP SP2 with .NET Framework 2.0, so it must be hardware. When I was searching for drivers on ATI's site I downloaded them for non-Mobility card, because in their Mobility Radeon section there were no cards beyond X1900.
I guess there are NO drivers for Mobility Radeon 2400 XT... At least no official ones
EDIT: Apparently, I'm dumb. When selecting what version of Driver/Catalyst to download on ATI's page I should have selected Apple XP Bootcamp instead of Radeon or Mobility Radeon. Seems like I didn't notice it at first because you need to scroll down a bit to make it visible.
Now that I've downloaded proper driver/Catalyst its finally working. What I did to install them:
1. Launch the downloaded .exe - this copies all driver files to C Drive/AMD folder.
2. The driver itself didn't want to install, complaining about incompatible software or hardware.
3. Reboot
4. After reboot is done, pop-up window appears saying new video "vga video adapter" is detected and offers to install drivers for it.
5. Select manual install and locate the .INF folder inside the AMD folder on the C drive.
6. After install is done, reboot.
7. Now launch another .exe with Catalyst software downloaded the same way. This should install without issues.
8. Enjoy
I selected an option in Catalyst app so that games should keep aspect ration instead of stretching to widescreen and it all works perfectly now