Good news for those concerned with previous stated items!!!!!!!!!
ATI is also comming out next month with an All-in-One Wonder solution with an onboard HDTV Tunder and HD decoder chip!!! Read below and what NVidia just came out with. I'm sure ATI will compete. This is very very very exciting.
According to nVidia, the 6800's Video Processing Engine (VPE) is a quad-issue (address/scalar/vector/branch) processor with a 16-way SIMD vector unit, which supports both dynamic branching and integer processing. It's a dedicated unit, too, so doesn't simply repurpose the ALUs used by the pixel and vertex shader engines.
Here's the highlight reel of the VPE's supported feature set:
Integrated TV-encoder
HDTV Transport stream handling
HDTV Output (720p, 1080i, 480p, CGMS)
MPEG 2 Decode / Encode – SD & HD resolutions
MPEG 4 Decode / Encode
WMV9 Decode, including HD resolutions. (WMV encode may be added later)
DiVX Decode / Encode
Inverse Telecine (3:2 pulldown)
Motion Adaptive De-interlacing
High Quality Scaling
Video de-blocking
With support for HDTV output, an integrated TV encoder and encode/decode support for major codecs built into the VPE, it is clear nVidia is looking to challenge ATI for video feature supremacy. It also seems to suggest that nVidia is setting the table for some major improvements for its Personal Cinema line of products (can you say "HDTV"?) Personal Cinema has been nVidia's attempt to compete with ATI's All-in-Wonder offerings, and is a market segment where ATI has been dominant.