The VideoLAN Forums

And still a problem in 1.1.2.

To echo the other recent posters, I still have the problem since updating to 1.1.1

I have the same problem - since installing 1.1.0 on WinXP SP3, when I close a VLC window, the process is still in memory & the task-bar icon shows in the tray. If I click the icon then the process closes.
I didn't have this problem in 1.0.5, so it's a bug introduced in the latest build.