The VideoLAN Forums

Now that it looks like the nouveau project (and possibly intel too) will also be adopting VDPAU, VLC should implement it. HW based video decoding would be incredibly beneficial to those like myself who don't have a processor capable of handling 1080p and such.

-BZ

edit: not to mention mplayer and xine both seem to have it already.

I agree, I think it's very important.

It will get in when FFmpeg (libavcodec) gets updated. AFAIK it should work now, if you compile VLC with latest libavcodec.