ATI's M9 (Radeon Mobility 9000) and M7 (Radeon Mobility 7500) cards using the latest drivers has a new feature, like nVidia, called Theater Mode under the Overlay section in Display Properties. Basically what it does is take any overlay image playing on the primary display (LCD usually) then display it in full screen on the secondary display; TV, Projector, CRT, etc. I've seen the feature work on Dell's Inpiron 8200 and Gateway's 600 laptops using the OEM WinDVD bundles that come with the systems.
I agree witht the crappy quality. ATI has a long ways to go before they catch up with nVidia for the quality of the cloned overlay, but nVidia is not that stellar in the first place. Last I tested I saw really bad diagonal jaggies during panning sequences along with what seemed like horizontal lines that seemed like an interlaced sample that didn't refresh the overlay correctly. I'd wait for a few more driver refreshes and at least email ATI about these issues.
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