Dave from Beyond3D just sent word that he's posted an article detailing the video quality improvements and performance of ATI's recent driver updates for the X1000 series. Just by experimenting with HQV and a number of HD videos, the improvements are obvious. ATI is back on the ball.
"Although ATI, over recent years, have adopted a monthly official driver release schedule, at the end of 2005 ATI released an extra set of drivers, Catalyst 5.13, specifically with updates for Avivo on the X1000 series of graphics boards. These drivers were specifically design to enable some more of the Avivo functionality, demonstrating ATI's video transcoding capabilities, enabling hardware assisted H.264 decoding and, possibly the most important element, the promise of higher quality video playback."