I've seen various solutions to this problem and tried almost all. I've updated and reinstalled my drivers, disabled the sniffer, reinstalled Photoshop itself, and updated Windows. The "use graphics processor" box is grayed out and displays the titular error message. The notable effects of this for me are reduced image quality (more pixellated) and the zoom tool has no animation and is choppy. I can find no other places indicating the driver is malfunctioning.