Unfortunately you need to remember that the i3 CPUs are at the budget end of the scale.
It's definitely worthwhile to have a good GPU. You'll find that the picture quality is much better than even the fastest CPU could manage on it's own (that goes for SD as well).
Hmm, I would have thought an i3 would have been up to the task as well. My 2.4GHz Core2 duo e6600 can do 1080i decoding by itself running at 50-80% CPU, so the i3 should handle it too. I wonder whether there are issues with power saving modes and turbo steps.
Regarding the graphics card: I think it has been proven that good 1080i decoding with hardware accelerated decode and deinterlace requires HD4670+ or HD5450+ for AMD. No comment regarding NVidia - no experience. See here...
Not sure what you mean? I'm not using the CPU on its own, it has a GPU... I'm pretty sure that when I check out the CPU usage when playing back HD it'll be low.
Ah right that's interesting, my old dual core AMD 6000+ couldn't handle HD at all (even with an Nvidia 8800GT)
Do you know what your onboard GPU is jon?
There's a tool you can use called dxvachecker (I think) to check what is supported by the GPU for AVC at 1080i. I'm only guessing but I think you'll probably find it only supports minimal acceleration (ie it's only doing for example 10% of the work with the CPU doing the rest)
I'm pretty sure that the Asus P7H55-M has no onboard graphics card, it has the one that is embedded in the Core i CPU, and expansion slot for a dedicated one. So, if no dedicated graphics card has been put in, you are using the GPU on the CPU
There is no "specific" GPU fitted. There are several of these types of boards around, which are aimed at people fitting there own GPU (if you do not want to use the iCore integrated one)
Are you using RefreshRateChanger (it looks like it in the logs) and does disabling that make a difference? The one or two fields/frames per second just seems suspicious...