Acer Laptop Woes

I'll start by saying this is not the first time this has happened to me, I solved the problem before by formatting; but as that was when I first got it I didn't mind as much as I do now.

As sometimes happens I left my Acer 5672WLMi laptop on and I fell asleep, when I woke back up and checked up on the Laptop the screen had turned black.

Restarting the computer solved nothing as the XP logon screen was covered with static and all sorts of graphical errors.
Booting into safe mode worked so I ran a system restore and rebooted into Windows. Hurray! I am now able to boot into Windows! But before I could get myself into a celebratory mood Windows started it's glitching and disabling the backlight/freezing.

I went back into safe mode and used msconfig to put the computer into "Diagnostic Startup" and reboot, XP happily logged on and even after finishing loading it didn't freeze/die!
But as a computer is pretty empty without any services/applications running I eliminated the options of what the problem could be, turning things on one at a time.

First I enabled System.ini and Win.ini as those are core Windows components, then Services, then Startup items.
Once I found the problem to be contained in the startup options I started a process of elimination by turning on things like the Firewall and Antivirus.

But I had a thought while I was doing this, the problem occurs after a time of startup; now what starts up last on the laptop? The ATi application!
As it turns out cli.exe was causing the static/glitching/graphical errors/freezing/etc and the laptop runs happily without it.

As a summary for people having the same trouble: Use safe mode to do a System Restore and msconfig to disable the 'cli' startup entry.

Now I still have the problem of why it's doing this, I was unable to find any related problems through Google or searching forums so it's still somewhat of a mystery for me.
I will try a update of the graphics driver even though it is limited by acer, this problem is somewhat bugging me so I will try to find a proper solution.