A display engine of a video and graphics system includes one or more processing elements and receives graphics from a memory. The graphics data define multiple graphics layers, and the processing elements process two or more graphics layers in parallel to generate blended graphics. Alpha values may be used while blending graphics. The processing elements may be integrated on an integrated circuit chip with an input for receiving the graphics data and other video and graphics components. The display engine may also include a graphics controller for receiving two or more graphics layers in parallel, for arranging the graphics layers in an order suitable for parallel processing, and for providing the arranged graphics layers to the processing elements. The blended graphics may be blended with HDTV video or SDTV video, which may be extracted from compressed data streams such as an MPEG Transport stream.