Ok I am using Windows 7 Ultimate (64-bit) and have been using VLC for like 10 years and never had ANY problems until now!
Ever since I upgraded to version 1.1.0 every single time I try to play a video file (haven't tested on audio files) it says like: Please wait while I build font cache and it takes approx. 2 minutes to finish. This is seriously annoying! In the past whenever I played a video it would play IMMEDIATELY! I have currently reverted back to 1.0.5! Yes a cache-2 file was created:
d031bbba323fd9e5b47e0ee5a0353f11-i686 (Administrator\AppData\Roaming\vlc)
I should note all files are being played LOCALLY so no network is involved!