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Which version of the display drivers are you using?
Also, have you tried reinstalling WOW? Some games will adjust themselves to the specific video card at the time of install. If, for instance, you had an Nvidia card (or another series of ATI such as a 9xxx series) before this one, WOW might have adjusted itself for how that Nvidia card renders (such as it's capabilities which would be different with a difference series or brand of card). It might be that you need to reinstall WOW, or at least delete the file responsible for the video settings.
I would also do a clean reinstall of your drivers. Use add/remove to uninstall the ATI drivers, reboot into safe mode, and run Driver Cleaner Pro which you can find linked on this site. When you run Driver Cleaner clean all settings related to the ATI drivers EXCEPT the IGP ones. Also, if you had an Nvidia card in the machine before the ATI card make sure to run the Nvidia cleaning settings as well (excluding the Nforce ones). Reboot into normal mode, and reinstall the drivers.
Don't forget to post the results, k?
Hope that helps.
-Tip
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