NVIDIA's latest chipset is certainly nothing to get over excited about when it all boils down to it. Though with that being said, its graphics core is well above anything that Intel currently has available in their G33 chipsets. NVIDIA's chip allows for a maximum of 256MB of system memory to be diverted to the graphics core whilst Intel tops out around the 64 to 128MB mark using the DVMT which assigns memory as it goes.
While the single channel memory controller does limit the upgradability of the boards memory beyond 4GB, your basic system is not going to need this much at this stage. 2GB using Vista Home Premium is enough to get by and the integrated graphics having Vista certification gives you the option to run the Aero desktop without too much of a performance penalty.
Looking at the board GIGABYTE supplied us, it's more than what you're going to want for the Digital Home sector. But if you're aiming for an encoding PC, this one is going to be slower than your Dual Channel boards like the G33. Let's hope NVIDIA looks at this and releases a more mainstream chipset with at least Dual Channel DDR2-667 support. That would be more than adequate to handle these tasks and even overtake Intel in the Dual Channel tests.