Your card will easilly run this game, you can run sh3 pretty well on a bottom of the range dx8 card (radeon 8500/9200 etc) whereas you have a fairly high end dx9 one so youll be fine + since its an ati card you can crank up the AF to 16x with no framerate hit for some beautifully crisp textures, although i wouldnt stray too far above 4x AA.
Ram is the biggest performance limiting factor with sh3, i recently upgraded from 512mb to 4gb of ram, the difference blew me away, it was like playing on a new pc, faster loads (down from ~9min to less than 1) and around 10-15fps increase across the board.
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