Well the card is a 9550, but it is really the exact same as a 9600. So its a underclocked 9600. It's default speed is just lower than a 9600, so you can over clock a 9550 by 30% but the 9600 might only overclock 15% because its set higher to begin with. As far as heat and card life, it shouldnt be a problem as long as your overclocking with a reasonable numbers. So like 500/300 will mess some stuff up, I'd say stay under 450/250 and you wont have any noticable heat increase or loss of life.
With the loss of speed when on battery, its so you dont use a ton of power on the graphics card. So assuming you wont be playing HL2 or Doom 3 on battery or something its not a problem. If you want to make it so it stays at full speed all the time Right click desktop -> properties ->settings -> advanced -> powerplay tab. Theres a check box to turn it on or off, and a setting button to put it where ever you want while on battery or AC.
With the artifact thing with ATItools usually its safe because it heats up as if you were playing a graphics intensive game, If you want you can up your numbers a little, that tool just gives you a good idea of how high you can go before you start running into problems.
Personal note: I leave the ATI card at default settings when on AC when I'm just surfing the net, writing in word or making a presentation. Then I open ATItools and load my "Gaming" profile I set up and play HL2.