Yes. Or not any more, as may be in your situation.
When you update the graphics driver, the game sees the new graphics driver as a new device, and deletes all the settings resetting them to default. Now this is really not needed, but alas, the game does it. You should do the following:
- before the update make sure you have a COPY of the file "options.ini" which is in your Documents\The Sims 3 folder, for example on your desktop
- after the graphics driver is updated, when the game starts, it'll make a new factory default options.ini
- you can edit that file using Notepad. Edit the new options.ini and find the line that starts with "Lastdevice = <blah>". Copy that entire line.
- now edit your old options.ini, and find the same line. Paste the copied "Lastdevice = " line over the old one, making sure it's replaced
- save the old options.ini, then copy it to your Documents\The Sims 3 folder.
This way you'll retain all your settings.