QUOTE(ssamadhi97 @ Dec 19 2002)
but i guess it might prove to be difficult to create a decent on-the-fly ac3 encoder that does consume few enough cpu cycles to allow smooth video playback at the same time..
Well, what could turn out to be very helpful here is the fact that bitrate is no issue, so you can spend bits like crazy and dont have to care much about the PSY model used, consuming at least some part of the used CPU power AFAIK on a normal encoding process

. I honestly speaking have no idea about the encoding principle AC3 is using and if there is any DCT involved on encoding or not, but i feel any Athlon or better should be capable of doing that. The only remaining problem then will be that the very same CPU has to decode the 5.1 Vorbis and the MPEG4 video

....
QUOTE(tangent @ Dec 19 2002)
Even if done on an interface card, PCI might not even have enough bandwidth for the audio. Best bet seems to be the NForce/NForce2 APU with the MCP-T Southbridge which does realtime AC3 encoding.
Yup, AC3 hardware encoding would be excellent, but will it allow to output via SPDIF ?
QUOTE(TheBelgain @ Dec 19 2002)
Much as I am very much looking forward to Theora and am looking forward to it's release, I think that sorting out a good implementation of 5.1 Vorbis at sensible bitrates (< 200) should be higher priority
We cant decide that, we just have to believe Xiph people know exactly what they are doing. Emmet and Monty have proven in the past they have a good instinct what users need and want, so lets wait what they come up with ...
edit: fixed quotes.