IBM ThinkPad 560X Graphics Problem

[ThinkPad560X]

I get a problem when installing Windows period. Windows 95,98 will install fine but have bad graphics resolution I think its 640x480 and 16-bit color. I downloaded the neoMagic 128XD Driver under the lenovo website 560X/560Z Drivers page, and install it and it asks to restart, after it restarts the Windows 9X load screen comes up and acts to go to Windows page, then goes black then has a horizontal rainbow line on the top about 1/2 thic and its basically frozen and have to turn off manualy. I then turn back on and enter safe Mode and unistall it and restart and back to the 640x480 resolution again.

I installed Windows 2000 Professional over the Windows 98 and Went on Microsoft update and it downloaded the graphics card on its own and my resolution went really great I get 1024x768 and 32-bit high color. But Im wanting Windows XP Home on my 560X and when I install the upgrade version it gets to the Installing Windows part and then says restarting Windows. It restarts and shows the XP load screen the first time and then show the install screen again and then I guess when it opens a type your info page the screen goes black and shows the horizontal rainbow line again. And yes I had Windows XP Professional running on this before but it had a Hard Disk Drive. So I don't know how to get past this frozen horizontal rainbow line black screen. I even upgraded to the highest Bios Version the lenovo site had on the Driver download page. Is there a higher version than I8ET33WW, 12/17/99