All Intel Macs (with Nvidia and ATI graphics cards) should already have hardware H.264 decoding. IIRC the ATI cards can even do hardware encoding (well ATI were working on this a while back, but haven't heard much since).
So it should just be a matter of enabling those features.
http://ati.com/technology/Avivo/index.htmlThat was my thought. Why put a dedicated chip in when you already have a $50 chip in there that does what you want.
I don't think the X1600 had the encoder built in but the newer models do. It's just a matter of turning it on. However if it is built into the graphics cards then the faster the card, the faster the encoding.
Yeah Avivo is in there. It just needs to be enabled. Why put additional hardware when the GPU is there waiting to be used to encode/decode. I know it took some time for Windows get get a driver for it.
Most of the talk that I've heard is that it is ridiculous to go beyond what the GPU does.