In Ubuntu 11.04 I used ffmpeg-svn version. And with vlc 1.1.8 this problem didn't exist. But with vlc-1.2.0-git , I had the same problem. I had experienced lot many bugs in Ubuntu 11.04 so I wiped it off and installed Debian Squeeze. On this debian, vlc-1.2.0-git works perfectly fine with ffmpeg-git...