Whenever I load up Oblivion on my AMD 6950 with the latest Catalyst 12.4 drivers, I get a grey screen every time. I have tried turning off HDR and Bloom but it does not change a thing. I have never had this problem before so I suspect its the latest AMD drivers.

Can anyone suggest a fix or possibly file a bug report to AMD?

you do have a choice. You can uninstall the drivers that cause the problems and allow the OS to reintall default drivers, then use the windows update to get their recomended versions installed. Try that first. If it meet's your requirments, then your done. If you choose to go further and want newer software, Don't download the 12.4 drivers, Go around the autdetect system on the AND web site and get the previous driver package instead. My system has No video card in it, It has On chip 6550 Radon and on the board the same integrated Dual video display. It is sli ready and cross fire ready but I don't need all that. I hope this helps and it's only a suggestion.

Nevermind, I found the problem. I updated Oblivion by using the Unofficial Oblivion Patch and for some reason it deleted my Shaders folder. It's not the 12.4 Catalyst drivers, it's just that I updated both the game and my drivers at the same time and the update screwed up my game