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OSD prior encoding?

I am using the DM368, and I was wondering if the processor can perform OSD on a frame (/dev/video0) before being encoded. I'd like to embed some OSD data into the frame. I understand that can be done when displaying a frame, using the frame buffer, but I am not sure this can be achieved when encoding. I understand this could always be done by software, but I am afraid this will be CPU intensive on the ARM926 side....

Thanks.