Basically it’ll be talking about the tray icon; there will be a little red ATi square icon in the system tray next to the clock.
You don’t need it and can safely get rid of it for all practical purposes. It’s not going to make any noticable difference to your system performance either way though. I too would be interested to know what flagged it up as a problem.
If you’re comfortable editing the registry I can talk you through removing it. Alternatively, tools like HijackThis will let you disable items using a nice pretty interface. If you want to try it out first, you can disable items temporarily using ‘selective startup in msconfig (start / run / msconfig) which is built in to Windows.
(They used to have an option to disable it built in, right-click / preferences, however I don’t remember seeing this in recent versions)
Really though, I’d be questioning whether this is the correct course of action at all and where you’re getting this info from, as it sounds like the sort of behaviour from applications which like to throw red exclamation marks all over the place in order to show you how vital their application is.