I have been running my card at 1100/1400 +20 using AMD Overdrive, decided to install the latest Afterburner and use the registry hack to increase the power %, but after a reboot, both AMD Overdrive and Afterburner refused to allow me to overclock, the sliders only showed the default clocks or lower, so I had to undo the reg hack, uninstall both the AMD drivers and Afterburner, reboot and then reinstall both, so I am back to 1100/1400 +20.
AMD Overdrive lets me set my clocks to a max of 1200/1500 +20, but after a few minutes running COD2 the game hangs for a minute, then carries on, but I can see from the event logs that the driver has crashed and restored, so im guessing the power need increasing to hold those clocks so im back to 1100/1400 +20 for the time being till I get the time/nerve to flash the bios...
I do notice though that at 1100/1400 +20, my GPU usage stays solid at 1100 core, no sign of the throttle spike mentioned in the OP, but at 1200/1500 +20 I was seeing spikes, well more drops, it would sometimes go from 1200 down to about 1141 on the core according to Afterburner.