The problem is that you are asking a question whose answer is changing rapidly
Today your best bet is probably to use the "restricted driver" included with 8.10 (which is a recent version of fglrx), playback through the opengl output, and turn on sync to vblank in the control panel. On the other hand, we have released enough code and register header info for the open source drivers to start making rapid progress with your GPU. I don't think either driver is perfect for what you want today, but both are progressing fairly quickly.
Sorry that is a crappy useless answer but we're kind of at an inflection point here -- until a few weeks ago fglrx was pretty much your only option, but now the open drivers are moving ahead quickly too.


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It gives me things/directions to try.

