S!
9.12 did not fix anything. Still got garbled text and flashing textures etc. in game. This is only when using Perfect setting in OpenGL. With Excellent all is normal.
So I did a new install of IL2 with bells and whistles on a fresh install of Win7 64-bit, dropped the atioglxx.dll from 9.10 to IL2 folder and game works rock solid. With VSync on average FPS counter in The Black Death is 54-55FPS so not bad.
Maybe we could wish for some dll's that support ATI better

Otherwise IL2 still goes on strong as most of hardware, even older ones, run it very well