The methodology is a well-documented "Phoronix Benchmark Suite".
However, why in the world is this methodology relevant for the hosting service? Would any of you really do any x264 encoding on an outsourced server, or would you use your desktop?
I would much rather get apache running, and run the ab (Apache HTTP server benchmarking tool).
I might, actually. A huge part of the reason I own a VPS is precisely because I don't own a desktop, and having a persistent networked machine comes in handy often.