I had the same problem with a 7950 card (using Catalyst 13.4 and 13.5beta drivers) on scrypt-based currencies. After a day of fiddling with settings and I found the solution: force the vectors to 1 by adding " -v 1 " to the command line script. That should fix the HW errors.
My full set of working options are -s 20 --lookup-gap 2 -I 17 -g 1 -v 1 -w 256
when i use the -v 1 the miner crash after some time. ( dint even run just printed the txt of cgminer and version .... )