How to solve ATI Radeon 7670M/ Intel HD Switchable Graphics recurring BSOD error?

I recently bought a VAIO E Series laptop with an ATI Radeon 7670M and Intel HD Switchable Graphics. Around about one month ago, my computer started shutting down with atikmpag.sys blue screen error and the frequency of the errors kept on increasing with time. I am really worried about my VGA Adapter and whether or not it's gone bad. It's a 3 month old laptop!

I searched on Google about atikmpag.sys BSOD and most of them suggested that my driver probably needs to be updated. I searched the Sony website and also the ATI website, I did have the latest drivers installed. Yet, I uninstalled the driver and installed it back again. But blue screens just keep coming back again and again. It generally happens more frequently when I have a video running and have paused it to do something else.

I hope it's a driver issue!

Edit: Error Code - 0x00000116

Edit 2: Reinstalled Windows. Installed all the drivers again. Doesn't help.

It was a driver issue. After upgrading to Windows 8, I saw that there was a new AMD Graphics Driver for Windows 8. Solved my problem since I installed it. This is the driver.