It will handle supersampling transparency antialiasing (or whatever ATI calls their equivalent, Adaptive AA I think), however high levels of fullscreen supersampling (SSAA) where every pixel is antiliased is impossible on any modern game. That is why multisampling (MSAA) is used, which only samples the edges of polygons (and therefore objects), but not inside the polygons like SSAA. You can get a similar level of edge-only antialiasing with MSAA as you can with SSAA, without the enormous performance hit.
For example, in Left 4 Dead without any AA I get >200FPS with a GTX275 in certain areas. With 16xQ MSAA (as that is what all games use without forcing SSAA in the drivers), this drops to around 150FPS. If I apply 4x4 SSAA this goes down to 21FPS, and that's without moving around. You may be able to run lower levels of SSAA without such a large performance hit, but it will still be larger than with MSAA and the edges of polygons will not be as smooth as with a high level of MSAA.
If you can stretch your budget, try and get a HD5850 as it will be better in the long run.