A single chip set-top box system and method is provided. The system comprises, for example, a transceiver, an audio/video decoder, a CPU, peripherals, DAVIC MAC and a graphics processor. The transceiver receives a digitally modulated compressed audio/video signal, and the audio/video decoder receives the compressed audio/video signal from the transceiver and decompresses the compressed audio/video signal. The graphics processor blends the decompressed audio/video signal with graphics to generate a blended video image with audio.