I think you've misunderstood something you've read. Intel's CPUs do no have video nor audio processing. They may be fast enough to decode H.264 without an external processor (but I'd still prefer to use the one in the video card), but there's nothing dedicated on the CPU (actually there's nothing dedicated on the GPU either, but I like to off-load what ever processing I can).
Windows 7 still has the software mixer. It's obvious when you can control the volume of each individual program that's producing sound. There was a stink from a very vocal minority, they were quickly forgotten. Though there was a consolation, an API was provided for programs who want to bitstream, but they have to be specifically written to do so. If they just open the Windows audio device and start playing sound, they'll get the new mixer.
Sorry I think you've misunderstood something you haven't read
I have the iCore 5 650, Windows 7, TMT3, and all the required ingredientss.
The new intel iCore 3 & 5 do have the GPU and audio processing on the CPU. (iCore 7 no) They came out beginning of the year. And with the proper playback software you can by pass the windows mixer and bitstream to your AVR processor. For BluRay, TMT3, WinDVD 2010, and others, for Music, FDDSHow and other software (ithink, on the music part)
The iCore CPUs were buildt just for HTPCs and can process any current HD video file format you can throw at it easily with the proper software setup correctly
