Here are a few data points:
A PIII/733MHz system can encode one video stream using the MPEG-4 codec using 480x480 capture resolution. This does not allow for live TV watching, but does allow for encoding video and then watching it later.
A developer states that his AMD1800+ system can almost encode two MPEG-4 video streams and watch one program simultaneously.
A PIII/800MHz system with 512MB RAM can encode one video stream using the RTjpeg codec with 480x480 capture resolution and play it back simultaneously, thereby allowing live TV watching.
A dual Celeron/450MHz is able to view a 480x480 MPEG-4/3300kbps file created on a different system with 30% CPU usage.
A P4 2.4GHz machine can encode two 3300Kbps 480x480 MPEG-4 files and simultaneously serve content to a remote frontend.
The second mode of operation is where MythTV is paired with a hardware-based video encoder, such as a Matrox G200 or a Hauppauge WinTV-PVR-150/250/350/500. In this mode, because the video encoding is being done by a dedicated video processor, the host CPU requirements are quite low. See the Video Capture Device section for details.
The price differential between a frame grabber and a card that implements hardware MPEG-2 encoding, such as the Hauppauge PVR-x50 series, is now less than $30 US. Primary development in MythTV has transitioned to supporting MPEG-2 capture devices and HDTV, so if given the option, go with the hardware MPEG-2 encoder.
If you have a Via M10000 series or a Hauppauge PVR-350, MythTV can use the hardware-based video decoder for playback, which further reduces CPU requirements.