Earlier this month we shared that the XBMC (formerly known as X-Box Media Center) project was working on VDPAU support in a separate branch of this multi-media program that's also used by Boxee. Yesterday afternoon this branch was merged back into XBMC, thereby now providing an "out of the box" VDPAU experience for this popular program.
The commit that introduced this mainline support can be found on the XBMC Trac, but be forewarned the page is rather long as the entire commit is displayed, which may cause some problems for a few web-browsers.
What's next for VDPAU? When will XvBA get released? Tell us your thoughts in the forums.