First off, I have an ATI graphics card. For some reason I got it confused with AMD, sorry. I don't know if that makes a difference though. lol.
So I went with option 2, as when I had the previous bootcamp, it always had the standard VGA driver. But the graphics card in my mac machine right now is an ATI one.
So I'm doing option 2 and starting over because maybe I didn't install right as you said.
I deleted the bootcamp partition.
So I'm supposed to first format a flash drive by MSDOS FAT and set it to Master Boot Record and name the disk MBRFAT, then copy and paste the graphics files into the root of the drive? I did that with no problem.
Then with the flash drive still plugged into the back of the terminal, I'm supposed to make a windows bootcamp partition right?
I'm able to do this until I get a screen saying that the USB which contains the graphic drivers, contains a boot drive. In order to proceed with creating a partition, it needs to disable the drive. In other words, whether I pressed continue and it ignored/disabled or unplugged/ejected the drive, it would have the same effect right right?

My issue is, is that the usb drive needs to be plugged in while my hard drive is being partitioned right? Or does it have to?
Because what I have tried is unplugging/ejecting the drive and that screen did not pop up.
I would then plug the drive in during installation before the mac chime, yet I get another issue.
During the windows 7 setup installion, it tells me that there are missing drivers and it cannot complete the installation. I tell it to load from the USB and it doesn't.
I have heard this issue is from a faulty or corrupt or dirty Windows Installation disk. This doesn't apply here as the disk I'm using is not dirty.
Some people have said that to just try again and again and that screen won't pop up. I think this is connected to the dirty disk
Some people have said go into the setup and disable driver signing. Well I don't want to do that.
Some people have said I'm getting that screen because I'm trying to install 64 bit drivers on a 32 bit mac which is what I think I have. So then what do I do?
Please help I'm confused right now.