ATI has just released the April version of their Catalyst drivers.
Video Quality Improvements
Improvements have been made to the Avivo video processing engine during standard definition (SD) video playback. Edge enhancement or sharpening effectively improves image quality by enhancing details lost during encoding and processing. Noise reduction algorithms are improved to ensure original detail is preserved, while removing unwanted noise.
Windows Media Center Edition Video Conversion Utility
Catalyst 6.4 introduces a Windows MCE Video Conversion utility. This utility allows users to convert video content that is recorded by MCE, or video content that is available to MCE, to variety of different formats. The video content can be converted to MPEG-2, MPEG-4 SP, MPEG-4 AVC and Windows Media. Ipod Video and PSP video are listed as separate formats for easy recognition.