Yep... and that's the main reason we planned to add video support *after* 3d rather than before. Shaders are great for certain back-end video tasks, but before we can feed raw video buffers into the shaders we need the same lower level infrastructure (essentially DRM) as 3d.
Just to make sure this is clear -- if video support worked the same way as pre-5xx ASICs and enabling open source vide development was just a matter of releasing overlay information, I think we would do that in parallel with 3d rather than afterwards. We will take a look to see if there are any easy options (eg maybe only supporting one video format with the overlay but one which popular players can work with) just in case, but I expect that we're going to need the 3d foundation in place before we can get good open source video support on the Avivo parts.
I don't think we have released all the overlay documentation yet. We were planning to do video stuff *after* 3d although there does seem to be a lot more interest in video than we initially expected. Is the video interest mostly from "everything being on YouTube these days" or are we talking about actual movie playback, tv watching etc ?
I bought a 690G motherboard + energy efficient AMD X2 (after the documentation release announcements) specifically to use as a PVR, so full screen DVD and TV is a must for me.
At the moment I'm not watching TV through the PVR because the frame update isn't quite fast enough and after a while it irritates me. I can cope with watching 1 or 2 recorded shows, because I know I can switch back to the TV and the drivers will get better...
The 3d acceleration is good enough for me, but I'm only a casual gamer.