Does Radeon has AO capability to enable anywhere like the nvidia card for better eye candy ? or whoever has Radeon will get "Less" enhanced graphics in skyrim.
It's not less; consider AO an "extra" feature if anything, since it isn't included by default with Skyrim. Also, while Catalyst has no setting for AO, RadeonPro (found on this forum; top sticky) does have AO, and I believe it's working for Skyrim.
Yes its working in Skyrim, but it works in the same layers as water, what means that AO will look weird when seen through water or underwater. If you can "deal with it" RadeonPro has the best quality/performance AO. Just select medium quality!