Although you've found a fix I have an 8500 and use the Rage3D tweak programm that works for all Radeon cards you can pic it up at www.rage3d.com.
In an interview with a guy from ATi (also at rage3d) he said that there would be a refresh rate fix in a near driver release - next one hopefully if not the one after - built into the Catalyst Drivers themselves.
Even NVIDIA hasn't done that. It would seem an intelligent move. Most normal users don't have a clue about the refresh rate issue, and it can make games look like crap - which in turn can be blamed on the video card.
It would seem to be in a video card companies best interest to include an XP/2000 refresh fix.
Ep, glad to see you come back and tidy up...did want to ask a one day favor, I want to enhance my resume , was hoping you could make me administrator for a day, if so, take me right off since I won't be here to do anything, and don't know the slightest about the board, but it would be nice putting "served administrator osnn", if can do, THANKS