SO, Another update, I sent my laptop back to Dell, they changed the MLB and heat sink as my fan was making a noise, and sent my laptop back with a replacement HDD for fixing it ( I did not know i had THAT many problems with my computer ). I installed Windows 7 assuming it'd work correctly but well the display problem started again. I searched extensively through DELLs forums and found out people with 3G ram had the similar issues, apparently 1+2 is not the number 7 likes. I took the 1G out and i have not had any problems as of yet. Talked to a customer rep from tech support about this, they disconnected in the middle of my rant (hmm...). Now i'm trying to get a new 2G stick for my computer which works flawlessly with the existing 2G. Maybe this'd help someone or I'll be happy if anybody would like to throw some light at it.
Cheers.