In addition to above, its an nvidia technology starting with 8 series cards. It can be used to speed up all kind of applications. The use of the technology must be built into the software you're using. The site I linked hosts a list of all software that does offer cuda support (this is where I found coreavc)
coreavc codec supports cuda for playback. I did some testing and on a P4 630 3.0Ghz I played a 10GB 1080p BD-ROM rip and got unwatchable playback and 100% CPU load and 0% GPU load. After configuring KMplayer to use coreavc and configuring coreavc to use CUDA, playback was buttery smooth at 60% CPU and 20-30% GPU load.
I have a new media PC now with a C2D but I still use coreavc/cuda because it worked so well on my P4.