What this means is that in the near future, HuluDesktop (ala lmce hulu player) will be able to handle full HD with very low CPU usage and smooth framerates on low end media directors (Atom/Ion boxes for example)
Although full VDPAU support is in the new flash beta, it is not yet working for Hulu - here is why:http://www.adobe.com/devnet/flashplayer/articles/stage_video.html
As you can read, there is a new API spec for the new object which does GPU video decoding, and vendors must update their software before the benefits of the GPU decoding can be leveraged.
YouTube is already updating their video playback to the new API calls. You can read about YouTube's speedy adoption of the new API calls here:http://apiblog.youtube.com/2010/12/accelerating-youtube-playback.html
Just wanted to post this, as I'm sure many people will be wondering why they aren't seeing any performance gains if they manually installed the new Flash 10.2 beta manually. As soon as Hulu updates their software, we will be in for a big treat!