From what I read in the rpi forums - they did customize vlc so I suspect Remi is right.All I'm saying is that this is not the VLC released by VideoLAN.org, so I don't know the details how yours behave.
Thanks - but that's too bad - is that a limitation on the RPi version (MMAL renderer?) or VLC in general? The text overlay works perfectly with hardware acceleration though.You need to disable hardware decoding acceleration.