FWIW, I've been using vdpau for HD htpc's for quite some time now and
my experience has been great.  I think this is the case for most
people as well.  However, xine-lib (especially vdpau) development
seems to be dead at the moment.  There are known bugs and as far as I
can tell nobody is working on resolving them.  You may want to look
more into that before making your purchase.  I have no experience
using vaapi so I can't speak to that.  I also have no comment about
your transcoding requirement other then if whatever hardware you have
works now, I can't see why something faster wouldn't be able to manage
as well.

My current systems are all low power Zotac ION boxes, and 'normal'
pc's using GT220 video cards.

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