There is no specific settings for this. But you are correct when comparing MP3s that have little to no dynamic range to ac3 that has lots of dynamic range the average volume will appear lower using ac3. The only provision within the ac3 specification was dynamic range compression and the switch may be found in Preferences --> Input / Codecs --> Audio codecs --> A/52 try "A/52 dynamic range compression" both ways and see what works for you. It will never compare to MP3 though.
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For me I hate the distortion of the compressor so I shut it off. But this has nothing to do with VLC per say, as I shut it off in every program as I recognize it immediately.
VLC does provide boosting the gain to the input to your sound card, a feature not found on many other players. Raising the level beyond 50% is a boost. But beware, loud passages can distort the input of the audio card.
There is one other feature in VLC that some users have found useful. This is the Volume normalizer. Preferences -> Audio --> Filters check the box marked "Volume normalizer" Then press Save and close the player. The next time the player is opened the changes will take effect. This option will make VLC kinda sound like every other player, less dynamic range.
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