we are working here on cluster (just bunch of raspberry pi
Currently, it's not Beauty, but it's BEAST

That prototype contain 5 pcs of model B with 512MB RAM, splitted by 256 for CPU and 256 for GPU. All of them have added pasive heat sinks to main CPU chip and ethernet chip. All of them are not overclocked, but after boot is changed governor to "on demand", so max cpu freq that was setted by that governor was 950MHz.
Performance:
every board is able to transcode 2 SD channels on input to 3 different bitrate (so 6 streams at all), with cpu on 700 MHz (sometime it hops to 800 MHz). Average temperature is on 39,6 Celsius. Audio is not transcoded, it's passed form input stream directly to output stream.

We are now preparing 2U case, which will contain 16 boards which will be placed into RACK, so temperatures will go down.
So for questions like "is it possible to hw accelerated transcode on RPi?" we have answer: YES IT IS.
It's realy great device that RPi. Thank's to all of RPi team for who bring to us that piece of HW.
PS: sorry for some spelling errors, english is not my native language