the biggest compatibility you perhaps should be worrying about is the OS compatibility, the BluRay drive (of course), the Motherboard Chipset and the graphics card (may be integraded in the chipset).
I'm quite sure this processor is more than capable to decode bluray. I was able to decode an X264 stream (MPEG4/AVC) at 1080p using my tiny T7100 processor (1.8Ghz) smoothly. Most of the processing was done by the processor since the intel X3100 graphics didn't have video acceleration.
OJ
