After you download The new Rage driver patch from AMD : http://support.amd.com/us/kbarticles/Pages/GPU121AMDCatRagePerfDriver.aspx
Go into AMD Vision engine control center, Go to the "gaming tab", Then go to gaming performance, then into standard 3d settings: there you will see a slider bar, slide it to the left so it say's Optimal performance.
Then Re boot you'r computer.

The only issues after that should be some very light page tarring. this is the best Fix i have found so far.

There are a few slider bars. None of it says "Optimal performance" for me.

Look for standard 3d settings, it should be the bar that say's "performance"

It helped a little bit but the game is unplayable. It went from freezing every 5 seconds to every 15 seconds now.

For Nvidia gamers, after you've installed the latest Beta drivers, go into your control panel and force Vsync on. Before doing this i was getting jittery game play with the beta drivers, after forcing vsync on so far I haven't been jittery anymore. Just to clarify when I say control panel i'm referring to the nvidia control panel outside of the game. Currently the game doesn't allow you to control vsync at all and it is not active by default.

Dont know what to tell you dude, it fixed my issues. might just need to wait for a patch or update, this seems like an over-site between ID and Amd/ nividia. my best guess is that ID did most their testing on Nvidia cards and not on ati cards. but that's just speculations

Sorry I'm having trouble finding this slider.

My catalyst includes:

Anti-Aliasing
Anistropic Filtering
Tessellation
Catalyst A.I.
Wait for vertical refresh
Anti-Aliasing Mode
OpenGL Settings: (check box) = Triple Buffering

What should I adjust if you don't mind me asking.

Thank you!

I haven't tried this fix, but this is what OP is talking about: http://i903.photobucket.com/albums/ac239/powermapler/CatalystPerformance.png

I just tried that. I'm using the "new" rage drivers as well. It didn't do jack. Still having the same texture issues, low fps, and constant freezing every 5-15 sec.

O well. Wish I could get my money back but I got it on steam. I guess I will have to wait a few weeks for a fix.

It didn't do anything for me. It still freezes hardcoe every few seconds, and i'm pretty sure it's related to the fact that the game is using 100% of my cpu all the time

Thank you for taking the time to make the step by step . I will test it when I get home later tonight.

I deleted a flame-ish unhelpful post. I then deleted two subsequent posts that quoted it. Folks, if you see a post that is deliberately trying to be rude or derailing a topic, just report it, don't feed it or quote it. Makes the clean up easier.