Setting up a list of supported video cards as there are alot of questions popping up about will my system handle it.
So in short if you have any of the following video cards your system once it has the correct software SHOULD be able to handle the H.264 video.
I am not saying that everycard on this list will work perfect but based on the SPECS it will work.
If you have one of these cards and it does not work let us know and I will take it off the list.
NVIDIA® ForceWare® driver greater than or equal to version 158.18.
I suggest the latest availabe from:
XP 32 bit:http://downloads.guru3d.com/Videocards---NVIDIA-ForceWare-(32-bit)_c10.html
If you looking to buy a new GFX card for this purpose make sure you only buy a card from the top block (8xxx or 9xxx). These cards are PCI-e and will not work in computers older than about 2 years.
Download GPUZ http://www.techpowerup.com/downloads/843/TechPowerUp_GPU-Z_v0.1.7.html and it will tell you the bus interface you are using.
If you already have a card that is on this list it may be worth trying based on your other system components but note you may have to upgrade your GFX card as well.
Support HDCP which may become a future requirement.
look here for semi complete list: http://www.hardforum.com/showthread.php?t=1071342
you need to ensure your card type and manufacturer model number is supported not just the card model.
GeForce 9800 GX2
GeForce 9600 GT
GeForce 9400GT Reported working - Best option for HTPC
GeForce 8800 GTX No longer recommended
GeForce 8800 GTS No longer recommended the 320MB and 640MB versions
GeForce 8800 GT
GeForce 8600 GTS
GeForce 8600 GT Best option for HTPC
GeForce 8500 GT Best option for HTPC
GeForce 8400 GS
GeForce 8700M GT
GeForce 8600M GTS
GeForce 8600M GT
GeForce 8600M GS
GeForce 8400M GT
GeForce 8400M GS
ATI HD3870 (confirmed working)
ATI 3850 (confirmed working)
ATI HD 2600 Pro
Saphire HD 2400 Pro AGP (requires some configuration doesn't work right out of the book)
ATI HD 2600 XT AGP (HD2600XT) for the how to http://www.geekzone.co.nz/forums.asp?ForumId=83&TopicId=22768