Do you have approx. 30 resolutions available in the list when you click on the Galaga icon on the bottom right taskbar in Windows? If the 30 or so resolutions are listed in the galaga icon, and you can switch to them, then the card and drivers should be OK.
And did you uninstall the previous graphics drivers from whatever card was in your PC before AVGA? You definitely HAVE to do that. You might try uninstalling even the AVGA drivers as well and do a fresh install (that's what I would do anyway). Make sure to follow ALL of Ultimarc's installation instructions for that card. Its a finicky card, one misstep w/ installation can create a world of confusing results.
Also Andy at Ultimarc might have some insight on this if that doesnt work.
Windows 7 does have some bugs that havent been worked out with AVGA. But I think that has more to do with switching between resolutions. You might do a search on it later if you run into those sorts of issues. I went with XP Pro SP2 to avoid all that mess...but XP ended up having messes of its own. Its a job man, good luck!