strange starting problems

[projectionist]

If I try to open an unencrypted .vob file with the Media > open folder method, VLC hangs with the controls at bottom and the header at the top of my screen. It will not respond to any commands when this happens.
If I try to open by double clicking the .vob in the same folder, VLC opens and plays without problem.
If I try to open the same exact file by Media > open file method, I get the movie, but no sound.

I am on WinXP, VLC version 0.9.6. Any ideas on this annoyance?