The NuVinci Hub is a continuously variable planetary (CVP) transmission, rather than internally geared hub.
There are no published data for the NuVinci hub efficiency, so the mention of inefficient is anecdotal. I am not sure if tillson has used the hub, but the answer posted may not be completely helpful. Derailleur gears are said to be 95-98% efficient when in good working order. Efficiency of the drive train on any bike is quite hard to measure in real world use, when chain and sprockets/cogs could be affected by wear, dirt, chainline and lack of maintenance. Internal geared hubs are quoted as being 8-10% less efficient than good derailleur setup.
The NuVinci hub is large and comparatively heavy, the latest N360 weigh 2.5Kg compared to say Alfine 8 speed weigh 1.7Kg.
Some of the advantages of the NuVinci for use with the Cyclone motor are that the chainline is constant to the driven crank ring. Unlike the line when using the conventional Derailleur gears. This means less chance of the chain skipping off, jamming and braking. As there are no discreet gears you can match the drive cadence to road speed continuously.
The weight of the hub is not an issue when you are using motor power to assist. If you think about it, you have the weight of the motor and batteries already added to your bike so you’re not looking at a light weight machine now anyhow.
As NRG mentions, the NuVinci hub is not warranted by Fallbrook for motor power over 250W, but I am not sure that would be a problem. I have seen systems with 10 times that power being used.
There is a perceptible drag from the hub but I am not able to measure how much. Again not a problem with motor assist, and I have not found a great problem pedalling without the motor powered. Here is a link to an independent review (not mine)
MTB with N360 not motor assist.
One big down side with the N360 is the cost in the UK around £330. I got mine direct from the USA online store £250 inc shipping and tax, but that was last year September 2010. I think the Alfine 8 speed is about £200.
Then you have to add the cost of the wheel rim and spokes, plus if you are not able to build the wheel yourself, the extra cost of that as well.
The N360 hub is very smooth and you can up or down shift under load or static conditions.
I am just finishing a rebuild of my bike with Cyclone motor and NuVinci N360 hub.
Bike over view