See the documentation here ftp://download.nvidia.com/XFree86/vdpau/doxygen/html/index.html
I Quote from the Documentation "The Video Decode and Presentation API for Unix (VDPAU) provides a complete solution for decoding, post-processing, compositing, and displaying compressed or uncompressed video streams. These video streams may be combined (composited) with bitmap content, to implement OSDs and other application user interfaces."
Sounds good eh... Well lets look at the benchmarks that were run with the new driver that includes this API.
NVIDIA VDPAU Benchmarks
I think the benchmarks speak for themselves.
Please post comments on your thoughts about this NVIDIA API...
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