I have the same card. I'm running the game at the same resolution as my desktop (1280x1024x32), I have Anti-Aliasing set at 6x, Anisotropic Filtering set at Application Preference, TruForm set to Always Off, the sliders set to High Quality and Vertical Sync to Always On.
Running the game in 1024 texture size. I *think* I left all the in-game sliders at default.
Can't say I've ever seen it drop below my monitor refresh rate (60Hz). Before the last patch I was getting some stuttering. I chose to pre-load in system ram and it seems to have cleared that up for the most part. But I'll be damned if I don't lose UDP a lot

Never happens when I first enter... just random times while connected.
Anyhow, the video is nice and smooth. I tried the Omega drivers, didn't really see any improvement, so went back to the Catalyst.