heres your answer
http://www.anandtech.com/video/showdoc.aspx?i=2977&p=4
please bare in mind though, that the pure video engines performance is clock based (hence why a weaker card gaming wise can upsurp the more powerful gaming card at video tasks if it is clocked higher) though it apparently does stop responding to clock changes above 400Mhz so if this chip in this laptop is 400+ Mhz in core clock then it should yield similar results as shown in the tests above
the7950GT is on there, so thats got the 7 series video engine, they tested on a 1.86Ghz C2D and they are all 1080p H.264 tests
looks like your looking at anywhere between 50% and 90% cpu time (tho i think that 90 is a peak and not constant) for H.264, and less for VC1 (less than 50%)
so far the GPU you really want is an 8600. but who knows when they will start appearing in laptops.
so i'd say yes...that laptop should handle things for you, though there is chance of dropped frames on really high bitrate movies considering on those tests they were peaking pretty close to 100%