AnandTech takes a look at Lucid's Virtu GPU virtualization technology, you can check it out over here.
Remember the basis of how Hydra worked: intercept API calls and dynamically load balance them across multiple GPUs. In the case of Sandy Bridge, we don't need load balancing - we just need to send games to a discrete GPU and video decoding/encoding to the processor's GPU. This is what Lucid's latest technology Virtu, does.
The name Virtu is short for GPU Virtualization and the setup is pretty simple at a high level.
Start with a platform that supports Sandy Bridge's processor graphics (H6x or Z68) and connect your display to the motherboard's video out. Add in a supported discrete GPU, supply power but don't connect your monitor to it.