Method 2: Setting the time delay before display driver recovery.

This method is a bit more risky since it involves editing your registry so be warned!
1. Goto registry editor (start -> run -> regedit)
2. Navigate yourself to HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\GraphicsDrivers (make sure GraphicsDrivers is highlighted).
3. Right click -> New -> DWORD (32-bit) value -> Name it: TdrDelay -> double click it -> Set it to A (hexadecimal) or 10 (decimal).

UPDATE: Try turning off the timeout detection:

1. Regedit.
2. Navigate to: HKLM\System\CurrentControlSet\Control\GraphicsDrivers
3. Add the following DWORD: TdrLevel and set the value to 0.
4. Reboot.

See this Microsoft support page for more information.