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For those interested, it can do hardware MPEG2 (and VC-1) decoding as well, you just have to pony up a few bucks for

the MPEG-2 license - http://www.raspberrypi.com/mpeg-2-license-key/

or the VC-1 license - http://www.raspberrypi.com/vc-1-license-key/



FWIW, I'm running Raspbmc RC5 and am able to watch 1080i MPEG2 (recorded HDTV streams) and 1080p H264 streamed over my local network. Sometimes audio decoding causes issues (I don't have it hooked up to a receiver) like strange audio glitches.

CPU usage does stay high while using XBMC menus, but it seems responsive enough.




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