Did you have a previous catalyst driver installed?
If not, try installing a previous one. The catalyst version 12.4 doesn't update a registry key that specifies its version, so that might be causing this issue.
That error doesn't occur unless the driver is actually not installed properly. Seeing how aero is enabled, the driver should be working.
Uninstall Catalyst all together and do an inf install. You don't need catalyst to be honest.
Simply open Device Manager -> Your Card -> Right Click -> Update Graphics -> Choose the location inside your graphics download folder that is Graphics\Drivers and input that into the browse box.
If your system is a crossfire system you'll need catalyst installed.
Also in your screenshot the folder looks like it's missing files.