I did a total empty hard disk install of Vista Ultimate today. Virigin as it gets. I have a Nividia 7900 GS graphics card. DVI output to a 1080p display at full resolution.
I ran Windows update with all updates, including a newer Nividia driver. I did not install anything third-party but VLC, 7zip, Firefox.
Anyway, when I go full screen in VLC 0.86c, the Task Bar floats on top and the cursor is not hidden! Playing DVD or XVid.
In in Aero.
I have tried GDI, DirectX, DirectX 3d output modules, restarting VLC between each change.
Anyone else?