I too had some similar ATI problems with this before.
(That made me go to the Omegas):hmm:
Try this:
-Put the catalys AI. to Standard or Off.
-Tripple buffer Off
-Make sure alternative pix centre is Off!
-Smoothvision off
There was another option to be turned off, but I simply cannot remember which one!
This one caused SH3 to crash after the first loading bar; for me!
Sorry! It's been a while!
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SH3+GWX
SH5+WoS
Still Sailing....still Deep 
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