EMD:
Generally Travelocity works reasonably well, but every once in a while it goes nuts. Sometimes it will tell you and itinerary is "not available" or it will overlook a cheap fare, and give you a really expensive one.
My strategy is to use Travelocity (SABRE) and then double check with www.itn.net (APOLLO). Then check with a couple of different airlines. Takes some time, but it often pays off.
Another strategy is to use the "Fare Listing" on travelocity to figure out the lowest possible price for a route, and then go hunting for that fare. This usually only works on really simple routings, though.
Good Luck - Ken