Yes the ATI HD 5470 is 100% compatible and is a fast card for Direct X10 and Direct X10.1. This leads me to think that you have an outdated driver so go and see if you can get a newer one and ensure your FPSC is updated as well as Direct X10.1.
Your i3 processor has a very low clock speed to ensure that your not running to much in the background while using FPSC that will give a noticeable performance increase.
Mystic Mod - Putting the fear back into sliced bread since 4th May 2010
Windows 7 Pro, Intel Core 2 Duo 2.8Ghz, 4GB DDR3, Dual nvidia SLI 9800GT 1GB, 1.5TB Hard disk