Here's another question...if linux and os x have hardware acceleration for video in their drivers (they do for both ATI and nV) and programs like vlc support it (they do), then why is this so difficult for Adobe? What am I missing?
[Edit: looks like VLC doesn't but ffmpeg, movieplayer, etc. have hardware accelerated h.264]
The hardware acceleration were talking about is where the gpu takes anywhere from a small part of the decoding (the ATI X1XXX series and the nVidia 6XXX and 7XXX) to the complete decoding of certain video files (which pretty much every gpu does now). Only Windows has a complete API called DXVA which allows DXVA aware codecs to access the specialized decoding hardware on the GPU.
What is sometimes refer to as hardware acceleration is when the video player uses the graphics card to resize and scale the video which pretty much every player can use.