Here are two stripped down atmosphere clips as used in "elephants in the mist1 and 3". 1 uses a localised cloud, 3 doesn't and is the better one I think. There's not much to them and no real secret, just make sure you have "receive shadows from surfaces" enabled and have a high quality/number of samples in the mist layer.
Don't think I even had raytrace atmosphere on for version 3 (not sure it was available then).
Feel free to play and make sure you post your results.
Merry xmas.