UVD is decoder, Xilleon is encoder to send data across Digital interface, like HDMI. I myself add UVD to Xilleon engine, to make one whole part of the HDTV 2D engine ATI has had on the market for quite some time.
http://ati.amd.com/products/dtv.html
Now, this is all part of HDCP schematic...each device, whether sending or recieving needs to have specific parts of HDCP compliancy. As Xilleon was already on the market, it was only a natural progression of this technology that would come to be known as "UVD", as Xilleon should have been set up properly in order to deal with the HDCP requirements. ATi has long been in the market for set-top boxes for cable broadcasts and HDTV, although not selling specific parts other than video decoders, RAMDACs and the like. Most peopel would be pleasantly surprised at the number of products that feature ATi parts...it wasn't videocards or chipsets that "sold the farm" on the AMD purchase.
Anyway, sorry for the confusion about Xilleon...that's entirely my fault.