We've seen that Nvidia will try to make a big deal of the fact that its up coming sub $50 or €50 8400GS card is based on the new G98/D8M processor by claiming that this 65 nm GPU will have, "...the world's most complete HD Decoder.“
According to Nvidia, when AMD does the H.264 or VC1 decoding it needs the help of a CPU for doing the Blu-ray /HD DVD disk acceleration engine, also known as AES128. The rest of the process, which includes Bitstream processing CAVLC / CABAC, inverse transform, motion compensation and deblocking is done by AMD's GPU, probably HD2400 PRO as the representative of the lowest priced AMD DX10 part.
Nvidia's D8P, the new 8400GS, will be able to process ACS128 Blu-ray /HD DVD disk acceleration engine on a GPU and it should make it superior to ATI. It looks good for Nvidia, but traditionally ATI has had OEM sales in its lap and we doubt this will change overnight.