I have a ATi Radeon 9550, with just an aluminum heat sink. Not even a little fan. It runs at default speeds of 250 Core and 195 Memory (maybe 200). I'm wonder how high I can go with ATi tool before my card starts to overheat dangerously. I've tried going to 400 core for about a minute, and I was scared to do it longer than that....
Just overclock it like a normal card.
Overclock the card's core and memory in 3-5MHz increments (I'd recommend going to 3MHz increments once you feel uncomfortable). After every 10-15MHz, run a 3D benchmark like 3dmark or play a game for about 45-60 minutes. If everything seems OK, continue increasing the core/memory until the experience artifacting (you'll know what they are once you reach this stage) or crashing.
I was scared to overclock my secondary PC's Geforce 6500 from 400MHz core and 532MHz memory to 447MHz core and 854MHz memory because of the huge memory clock increase. But it is very stable! I get at least a 30% FPS improvement in my games. I have seen improvements as high as 80% in average FPS!
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