http://uk.rs-online.com/web/generalDisp ... aspberrypi
* Broadcom BCM2835 700MHz ARM1176JZFS processor with FPU and Videocore 4 GPU
* GPU provides Open GL ES 2.0, hardware-accelerated OpenVG, and 1080p30 H.264 high-profile decode
* GPU is capable of 1Gpixel/s, 1.5Gtexel/s or 24GFLOPs with texture filtering and DMA infrastructure
* 256MB RAM
* Boots from SD card, running the Fedora version of Linux
* 10/100 BaseT Ethernet socket
* HDMI socket
* USB 2.0 socket
* RCA video socket
* SD card socket
* Powered from microUSB socket
* 3.5mm audio out jack
* Header footprint for camera connection
* Size: 85.6 x 53.98 x 17mm
So not very powerful in CPU MHz terms but it does have full HD hardware acceleration for video, albeit very specific H.264 only by the looks of it.