Your laptop only supports Windows XP and that's why you're having problems.
You have a video solution known as Mobility Radeon 9000. With this solution, there is no Vista or 7 drivers available at all and this also means that Aero can never be enabled.
Based on this limitation, it is very much recommended that XP be installed so it can make proper use of the video driver that Dell offers for it:
http://supportapj.dell.com/support/...dateid=-1&formatid=-1&source=-1&fileid=148994
I can actually make drivers for Windows 7 to be compatible, but not for your specific hardware. Unfortunately, the hardware itself is the limitation here.
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I will go way out of my way for you anyhow in an attempt to make something happen if you wish. This may get the projector working under Windows 7 (but definitely not Aero.)
http://support.amd.com/us/gpudownload/Pages/radeon-prer300-xp.aspx
Open the device manager. Right click on the standard vga line under display adapters section. Choose properties. Details tab. Change the dropdown to hardware ids. Copy and paste the results to a new post.
In the meantime, download and run (to extract) the driver from AMD's site shown directly above. It should make a folder at C:\ATI. After the setup is done extracting, close it and do not let it continue with install.
Await further instructions in my new post after you've shown me the hardware id information.