I have a dual experience with ATI Tray Tools. When I had my first video, X300SE based, I could not get latest ATI drivers work right - I got BSOD on each Shut Down or Stand By, although gaming was stable. Only ATI Tray Tools helped get rid of that BSOD.
But when I upgraded to ATI HD3650 - my current video (it even does not have active cooler, just a radiator), ATI Tray Tools gave BSOD on every Hibernate. So I switched back to latest Catalyst. And now my Sims 3 is stable - no crash since 2.june (I played it only for some hours though, but anyway - no real CTDs or BSODs, except those well-known game loading CTDs with awesomemod installed and left xxx.cache). My graphic settings are all on maximal, except resolution. And my PC is not even Dual Core - just P4 with 2GB RAM and XP + SP3.
So really weird, when it works and when not.
Oh, BTW, I have disabled everything related to ATI Hotkey poller and ATI External Event Utility (services, drivers). Maybe that makes the game more stable ? Mystery.