Thx Madxgraphics. However, the one you are referencing to is actually older than the one I have... (Spet '07 vs May '08...) So I assume Dell's website is the most up to date source for the driver.
Now some news on the colour depth (as the problem occured this morning just an hour after I started working

). This actually worked! After changing from 32>16bit, my graphics are behaving normally. I've regained control of Print Screen, and VNC is working !!! Now what would be the root cause of this problem?