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but the P3 doesn't seem fast enough..
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No. it isn't.
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I have managed to get it to record but not without skipping frames and lagging.
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How, with -dumpstream -dumpfile?
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Any options I can feed mplayer to cut down on the cpu usage?
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Yes there is, depends on the video type.
For mpeg1/2 or mpeg4 try adding -nodouble or mplayer -lavdopts lowres=1
-vfm ffmpeg will use half-res decoding to speed things up as well.
for H264 try mplayer -lavdopts skiploopfilter=all file.mkv
might cause artefacts like sudden color changes, in this case try e.g. "nonref" instead of "all"
(use -lavdopts skipframe=nonref:skiploopfilter=all:fast=1 for even more speedup, skipframe also works with VDPAU.)
First show how you are capturing the video to file. What kind of video is it? mpeg2? Can you make a raw video dump to file and then encode it later? Show what you are doing.