Ok here is what AMD Claims that their Optimizer do:
AMD Dual-Core Optimizer Version 1.1.4 - The AMD Dual-Core Optimizer can help improve some PC gaming video performance by compensating for those applications that bypass the Windows API for timing by directly using the RDTSC (Read Time Stamp Counter) instruction. Applications that rely on RDTSC do not benefit from the logic in the operating system to properly account for the affect of power management mechanisms on the rate at which a processor core's Time Stamp Counter (TSC) is incremented. The AMD Dual-Core Optimizer helps to correct the resulting video performance effects or other incorrect timing effects that these applications may experience on dual-core processor systems, by periodically adjusting the core time-stamp-counters, so that they are synchronized.
AMD Optimizer in Windows Runs as a Service amd_dc_opt.exe
I tested the difference by disabling the service to simulate without Optimization & reenable the service to simulate with Optimization
The results are as shown below using PC Wizard 2008 as a benchmark available here
Benchmark Result With AMD Optimzer using CPU Calculations
Benchmark Result with AMD Optimizer Overall Performance
Benchmark Result without AMD Optimzer using CPU Calculations
Benchmark Result without AMD Optimizer Overall Performance
From the result it can be seen that there is no real optimzation for CPU Calculation and Overall Performance
For Overall Performance the performance change is a 1.5% drop
For CPU Calculations the performance change is a 7.3% drop
It seems that by disabling this feature processing power would be ramped up
However do note that from the Overall Performance Chart
The video performance went up to 2.4% when optimization is enabled
And note the description from AMD Site:
(The AMD Dual-Core Optimizer helps to correct the resulting video performance effects or other incorrect timing effects that these applications may experience on dual-core processor systems, by periodically adjusting the core time-stamp-counters, so that they are synchronized.)
So it seems that the Optimizer did really perform as expected however CPU scores are affected as a result and many complains was the increase in heat generated from the system when optimzer is enabled.
My opinion is that a small increase in performance is not a great exchange for the heat generated that can potentially damage the system and cripple the CPU
Moreover I personally do not play games frequently I will probably keep out this software for a while.