I have a 4870 and am using a 1650x1050 display, I personally bought the 4870 because it was way cheaper then the 260 at the time but now with them the same price I still think the 4870 is a better deal. I belive the 4870 will perform better with future games do to its architecture, or atleast thats what I get from reading reviews, the 260 beats the 4870 mainly on older games.
There is no need to underclock the card just set the fan setting higher, I use 35% in at idel which took my card down from 80 to 45 degres and I set the fan to 50% when I am playing games which took the card down from 85 to 50 degres.
ATI needs to adjust there driver to run the fan higher at default settings, my fan was only running at 30% under load.