http://ati.amd.com/products/mobility...600/specs.html
Integrated AMD Xilleon™ HDTV encoder
Provides high quality analog TV output (component/S-video/composite)
Supports SDTV and HDTV resolutions
Underscan and overscan compensation
MPEG-2, MPEG-4, DivX, WMV9, VC-1, and H.264/AVC encoding and transcoding
Seamless integration of pixel shaders with video in real time
VGA mode support on all display outputs
spend a couple of quid and find out... says it does it in specs (as long as the specs are for a mobility radeon hd )
Just a couple of quid wasted if they lied and a bit of hassle for you
http://en.community.dell.com/forums/.../19520617.aspx (read this though)