Googled it and found only posts on Yahoo Answers, so figured I'd make one here.

I'm using an ATI Radeon HD 4870 X2 (not the newest card but still does the heavy lifting) with the latest drivers and get sporadic, weird display driver crashes. Sometimes Skyrim CTDs and a 'Display driver failed, it has been restarted' message pops up. Sometimes it bluescreens, with a display driver error message. Sometimes it replaces my second monitor with orange and my primary with black. Sometimes it just blacks both then restarts my computer. This is on 2xAA, no anisotropic filtering, medium shadows, high tex quality, 1900*1080, and my computer is pulling it off splendidly otherwise.

I know it's not an overheating issue as I've been running testing utilities on my second monitor and neither my CPU nor graphics card get anywhere dangerous (CPU hangs around 60, graphics card 80-82 and the fan doesn't spaz out either). I've no reason to distrust the windows error messages and it seems sensible to conclude the stuff that doesn't directly say it's driver related probably is given the symptoms.

So basically, anyone else found this? Any idea what causes it? I'm going to try systematically tweaking AA, then shadows, then something else etc. until it works but it'd be good to know if anyone else has already run into this problem and found a solution, or tried to find one and discovered none exists.

Nothing helpful to contribute, but I have a Radeon 6950 and this happened to me once while I was looking at the map. Skyrim just closed itself and I got the "Display Driver Failed" message, but I launched the game again right after that and it was working fine. Haven't had this issue with any other games yet, so no idea how to help, just wanted to let you know you're not the only one who experienced it.