Snowman is correct I was just on my way here to report this... Turning off heat monitoring in ATITool will correct the problem. So yeah good news for those of you using ATITool. perhaps trying this other Overclocking utils might also work? just a suggestion...
I found out that when i disable ATITool, which I use to overclock my 9600XT, the sound issue is no longer presant. This however is a pain in the butt because after I disable it my card is no longer overclocked meaning I can't play the game to the quality I want. So basically its a trade off...