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It would be rather cool... And, I'm fairly certain that the GP2X has MPEG4 encoding abilities in hardware.
OK, nevermind. The description for the SoC the GP2X uses can only encode JPEGs in hardware. It would be a rather large pain to encode an MPEG4 video in software at, or faster than, real-time. I don't know if this could be done feasibly...
Actually mpeg2 on the fly is a lot more possible to encode in real time on the gp2x since it requires less processor speed and the gp2x is definetly capable with the two cores on it for encoding. Probably could set it up to encode video on one core and the sound on another... Curious..
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I guess I can set it up to record the news for me and save that to the card as well. (I have 3 systems that use sd's, my mp3 player, my pda and soon (when it damn well arrives!) the gp2x. As I get newer and larger cards, they get handed down to the next device, I have some smaller ones I can use for daily stuff)
~Fox
I noticed your comment about play-asia. I had good luck when I got mine, but sometimes online stores can just drop the ball.