When I received the dongle last Thursday, I immediately fired it up and was able to play at 640*432. This was Catalyst 4.5 and MAME32v.070. I am, however, using Rage3D Tweak utility for overclocking. I see now that it has 640*432 as a defined standard resolution.
I installed Powerstrip for about 10 minutes last Friday and then deleted it. I don't think I'd had it previously installed before (But maybe I had it for 5 minutes and some registry tweaks were left installed.... but I doubt it).
I share this computer system with a nearby desk and use it for gaming. I've recently purchased Star Wars: KOTOR and upon getting to DATTOINE the game was literally unplayable. I googled and saw the game is severely crippled with 4.4, 4.5, 4.6 and DATTOINE in particular is unplayable (Literally jumping all over at about .25 FPS). So I downloaded the best driver 4.2 and that fixed that problem, but I could no longer get 480*432... Even after installing PowerStrip. Maybe it's possible, I just have not been able to figure it out.
Confused, I deleted the drivers, PowerStrip, and Rage3D and installed the 4.6s again. Unless there are after effects of PowerStrip being on my computer, you just need to then install Rage3D, insert the dongle, turn it on in the advanced settings, and not only does 640*432 reappear in Mame32, but it also appears in the ATI quick resolution switcher in the toolbar (Something that was absent in 4.5).
One more observation: While it's true I didn't do any tweaks in PowerStrip (which I installed after the KOTOR fiasco), 640*432 in MAME honestly seemed to have shimmering I didn't notice before. Since deleting and installing only 4.6 and Rage3D, I fired MAME back up and the shimmering wasn't there. Maybe it's just in my head, but for me this seems like the better combination. So no one flame me on that, but for some reason it just seems that way to my eyes.
Edit: I also have things like anti-shimmering(?) checked in the Rage3D settings. Didn't really think this was making any difference (It certainly doesn't do much for web browsing), but maybe this is what makes the difference in MAME. And just for the record, there wasn't a huge difference with PowerStrip, but for some reason my eyes do think it is a subtle difference.