I've been running TS3 fine for a few days now but I've noticed a small issue - whenever I have a Sim try to select a book from a bookshelf,
the text that appears in the little popup window with the titles of the books is blurry and jagged.

I'm running my game on a Radon HD4850, 512mb and a Core i7 920 on Vista 64-bit with 6gb RAM.

I have already updated to the most recent graphics driver, and I'm wondering if there is a setting in the ATI Catalyst Control that might fix this issue.

Does anybody have a recommended setting for the CCC? Or any other suggestion for fixing this issue, for that matter.
It doesn't exactly ruin the game, but it's still irritating

This is probably caused by a resolution issue - are you running at your native resolution? And fullscreen or windowed?

The game wasn't initially running at native resolution. I double-checked my monitor's resolution (1680x1050) and set the game to that, but sadly, it didn't fix the graphic glitch. I tried it both in fullscreen and windowed modes.

Thanks for the suggestion
Anything else I might try?

People with ATI graphics cards, particularly the model that you have are known to have many issues with their game, I've seen many complaints on the main forums about people having a lot of issues with the card that you are using. Perhaps its something that EA can fix on their part.

Except there are people with that exact card and -no- problems. Whatever is going on it's not specific to ATI cards, or even that card.