IIRC, the TV hardware and video capture card draw directly to the 
display hardware and frame buffer.  The video signal doesn't go 
through the CPU, so there will be an extremely small performance hit 
if any. In this way the hardware is similar to zoomed video on certain 
newer laptops.

FWIW, I use this feature on a _bunch_ of macs.  Throughout college my 
primary TV was a PowerMac G3 AV and 15" - 21" monitor.

Be aware, though, that if you are looking for very high resolution or 
crisp images, you'll be disappointed.

I believe that the hardware actually only captures video at 320x240 
and pixel doubles to get to the max size of 640x480 when displaying in 
full screen mode.  Thus, full screen images seem a little fuzzy and 
chalky.

Peace,
Drew


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