If you get an nvidia FX card with the legacy drivers, xvmc works (at least it did on my FX5700 in my old computer.)
I am fairly sure that this is only mo-comp XvMC. I don't believe any nvidia cards have accelerated IDCT. As a matter of fact, that is not in the XvMC spec, so XvMC would have to be extended to support it (which I believe is done for the OpenChrome drivers for the VIA but not for anything else yet.)
That said, mo-comp XvMC ought to be sufficient for your friend. As I recall, when I used it, I could play DVDs with about 2-4% cpu usage on my old P4 (2GHz) machine (as opposed to about 30-40% with Xv)
With the specs you cited, he ought to be able to play back hi-def mpeg2 video without problems (providing the mo-comp is fast enough to handle it, but I think it is). However, I have to admit that's of limited utility, because there isn't a lot of mpeg2 HD video out there (except for ATSC TV)


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