"Recommended" requirements?

[Jetsetlemming]

I'm using the latest ATI drivers available for my "legacy" hardware, catalyst 6.5's. I could try turning off shadows, that would certainly make the difference for the areas where it was hard from dynamic lighting... It's a costly graphical change for just the few areas with poor peformance though. Hm.
So, could you tell me if you guys use the later shader versions? Shader 2.0, Shader 3.0? Or is it all Shader 1.1 code?