Stop using GUI miner and start using CGMiner.
My 5850 gets ~350MH/s
I doubt GUI miner is the reason I'm seeing less Mhash
You are probably correct. However, you should see an improvement with CGMiner... most people do!
I don't know about the drivers, though. I use older cards, and they seem to only like Catalyst 13.1 so I won't be updating my drivers