Video Card can't handle high bit rate mpeg?

Got a question about my video card, I'm curious if its time for an upgrade.
I have created some video clips that are 1620kbps, at 720x576. When I play these clips, my CPU usage skyrockets to about 90-95%, all allocated to whichever video player I'm using (tried WMP, Real, and VLC).
I'm thinking it has to be my video hardware that can't handle it. I know the old thing doesn't game anything created since 2001 (Halo), but has tech-time really passed me up by so much, to the point where I can barely play a video clip?
Processor: AMD Athlon XP 1900 (1.6ghz)
RAM: 1GB Kingston
Board: Soyo Dragon 400 Ultra
Video: ATI All-In-Wonder 64MB AGP

If its a consensus here that its a video card problem, I'll head out to go grab a 256MB card, and we'll see what happens.

 

WOW 1620kbps is pretty high maybe a new vid card will help
and do you have the AC3 filters install on your machine if not this may speed up the playback.....