I am almost sure it takes places in the media director so a decent video card is a must. It doesnt need to be a game video card, just something with build in mpeg2 or mpeg4 decoding. There are some cheap ones with that on the market. Also, be advice that people have reported that nvidia works better with mce thant other cards (also linux suport is better). I dont get money from them so you can buy whatever you want. Just telling you about people experiences.