A personal video recorder (PVR) system includes a processing unit, a system memory coupled to the processing unit by a system memory bus, and an insertion module being coupled to the processing unit for inserting a packet into a PVR bit stream according to packet information. During a packet insertion operation, the processing unit is for reading data from the system memory, processing the data to generate the packet insertion information, and directly transferring the packet insertion information to the insertion module. By directly transferring the packet insertion information generated by the processing unit to the insertion module, memory bandwidth requirements of the system memory are reduced, and data access of the system memory is improved.