Hi,

Hope this will help anyone else who had the same problem.
The problem itself is "computation error" message for all GPU tasks that are first downloaded, and then given that status right away because there is an unexplained error.

I looked absolutely everywhere and found out what works - at least for me.

The problem is with the driver/software package that comes from AMD (for example latest drivers are 12.10) and during the installation - either "clean" or "dirty" - an error message is displayed in the log relating to SDK Runtime that this component failed to install.

How to fix this:
1) Uninstall all AMD Catalyst software, just chose the "express" option, reboot when prompted.
2) Delete all temp folders on your computer, including AMD and ATI folders on your C:\ drive. Also run Disk Cleanup (Start>All Programs>Accessories>System tools>Disk Cleanup) just to be sure all windows installer related items are deleted.
3) Download and install the tool Windows Install Cleanup. Then select AMD/ATI Catalyst/SDK from the list and delete it.
4) Download latest ATI Catalyst driver package and install.

This time around the AMD installer, when finished, will not display any errors in the installation log. After this Milkyway runs just fine.