If you use a disassembler with the "ati3duag.dll" you can find code that set the DX Caps for a SM3 chip.
VS: 3.0 with 1024 slots (NV40: 544) and only pointsampling (like NV40)
PS: 3.0 with 512 slots (NV40: 4096)
If you search a little more you can find a other part that change one property for the FP16 RGBA texture. It looks like that this flag allow the use of alphablending with this format. On the other hand the texturefilter option seems still deactivated.
VS: 3.0 with 1024 slots (NV40: 544) and only pointsampling (like NV40)
PS: 3.0 with 512 slots (NV40: 4096)
If you search a little more you can find a other part that change one property for the FP16 RGBA texture. It looks like that this flag allow the use of alphablending with this format. On the other hand the texturefilter option seems still deactivated.