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nice to see an update that fixes the heavy pixelation. However I can't use the version you posted here, because I have a new problem with it. I just post this right here so that you can look for it as soon as possible.
When I play a movie with an actual trunk version (and no pixelation) of VLC on my second monitor in fullscreen mode, the fullscreen image is displaced in some strange way. In my case the fullscreen image seems to be moved to the left and I have some strange artefacts on the outer right side (where the video is "missing").
This doesn't happen with the current stable VLC version 1.0.2 !
I made some screenshots to help you understand what I mean. The left half of the screenshots is my second monitor and the right half is the primary display adapter.
Although version 1.1.0 seems to solve the pixelation problem on my notebook (Win7 pro, 32bit), it won't show me the controls if i watch in fullscreen and move my mouse. How do I reactivate them?