Currently, the latest Mac mini features a Intel GMA 950 GPU (integrated-graphics-chipset) and that only support MPEG-2 decoding in hardwareWhat GPU's in the MacMini? I heard they were getting a decoding on the motherboard...
http://en.wikipedia.org/wiki/Mac_mini
http://en.wikipedia.org/wiki/Intel_GMA
The next generation Mac mini roumored to come out in October this year is speculated to use the latest Intel Centrino chipset (code-name: Santa Rosa) but use a discrete GPU (probably from NVIDIA since Apple now primary use Intel and Intel and Apple has recently entered into a close collaberation, ...if a NVIDIA GPU is choosen then the it will support NVIDIA PureVideo Technology which features hardware decoding of H.264 and VC-1 / WMV3, as well as MPEG-2 of course).
http://en.wikipedia.org/wiki/Centrino#Santa_Rosa_platform_.282007.29