I jst saw that it was out this morning.
It seems that the issues with Kotor 2 have not been solved: :(
http://www2.ati.com/drivers/Catalyst_53_release_notes.html)
Relevant Extract from the release notes:
Known Issues for CATALYST™ Software Suite 5.3
The following section provides a brief description of known issues associated with the latest version of CATALYST™. These include the following:
[...]
Star Wars Knights of the Old Republic 2: Playing the game under Windows XP with an ATI RADEON 9800 series installed, results in display corruption being noticed when changing the in-game options from low to maximum Topic number 737-10091
Star Wars Knights of the Old Republic: Loading the Dantooine level of the game under Windows XP results in slow game performance Topic # 737-10092
Star Wars Knights of the Old Republic 2: Setting the graphic option in the CATALYST™ CONTROL CENTER to Optimal Quality, followed by launching the game and setting the resolution option to 1600x1200, results in a performance drop being noticed. Topic # 737-10093
Assigning a hotkey to increase the overlay gamma results in the hotkey not functioning properly when playing an MPEG using the Windows Media Player. Topic number 737-494
The Apply button in the Custom settings of the Advanced mode found under the CATALYST™ CONTROL CENTER Video standard settings is grayed out when playing a media file. Topic number 737-497
Installing the display driver and the CATALYST™ CONTROL CENTER, results in a runtime error and the system tray failing to start when attempting to create multiple user accounts and enabling fast user switching. Topic number 737-10084
The CATALYST™ CONTROL CENTER installation currently does not check for the installation of Microsoft .Net Framework before preceding with the install, resulting in an error message being displayed when attempting to launch the CATALYST™ CONTROL CENTER. Topic number 737-10085
Setting the desktop display to 800x600 or 1600x1200 16/32bpp results in the incorrect display resolution information being provided when checking the video control panel in the CATALYST™ CONTROL CENTER. Topic number 737-10087
Using the ATI Problem Report Wizard under Windows XP SP2 with an ATI RADEON X850 XT installed results in an error message appearing when clicking the Finish button for the problem report. Topic number 737-10088
Hesitation and display corruption is noticed when moving an MCE window from the primary display device to a secondary TV or DVI display device. Topic number 737-114987