It looks like VLC is ready to come out with version 1.1.1 of their popular multimedia player and it when AMD CATALYST 10.7 drivers come out later this month, HD GPU decoding will finally be supported for Radeon video card users. GPU decoding is nice to have and wasn’t possible due to some unknown issue.
The latest released version of VLC, 1.1.0, that was out a week ago, and has been downloaded half-a-dozen millions times so far, has added GPU acceleration for HD decoding under Linux and Windows. On Windows, as already stated, the code isn’t working correctly with AMD Radeon cards. Therefore, we have been working with AMD on this topic and after common work, we are going to release a new version of VLC, versionned as 1.1.1, that will work with the upcoming ATI Catalyst 10.7 driver. AMD did provide us a beta of this driver and we have verified successfully that GPU acceleration works.