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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 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.
Encoded video takes up a lot of hard disk space. The exact amount depends on the encoding scheme, the size of the raw images, and the frames per second, but typical values for MythTV range from 700 megabytes/hour to 2 gigabyte/hour for MPEG-4 and larger for MPEG-2 and RTJPEG.
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Bottomline... you can switch between mpeg-4 and mpeg-2 depending on the length of the program you wish to record. But in 4 gigs your guaranteed two hours of recording at least, up to 8... kind of like working with VHS aint it?