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Running XP 64 bit with VLC 0.9.2, but when I load certain games, VLC's playback blacks out but audio continues properly. I'm running with default video output module, which I'm assuming is DirectX. Anyone else run into this?

Sorry, allow me to clarify a bit more...

Running two monitors on a 7800gtx with newest drivers. Video will black out when game starts up, but continue normally if I close it. I tried disabling overlay, but if I start a game thereafter the video freezes and the audio continues. Any ideas?

Sorry, allow me to clarify a bit more...

Running two monitors on a 7800gtx with newest drivers. Video will black out when game starts up, but continue normally if I close it. I tried disabling overlay, but if I start a game thereafter the video freezes and the audio continues. Any ideas?

Firstly you might want to upgrade your nvidia video driver to the lastest.
And then you'll have to properly setup a multiple monitor with the driver's control panel, lets say you hook up a plasma HD TV to the other DVI port of your graphics card so you might want to change both monitors to independent resolution setup.
I've never tried doing video playback during 3D game play, it may or may not work properly, you might want to try out various video output modules, directx, direct3d, opengl, even wingdi...

Running XP 64 bit with VLC 0.9.2, but when I load certain games, VLC's playback blacks out but audio continues properly. I'm running with default video output module, which I'm assuming is DirectX. Anyone else run into this?

It will display black video when you have choose to play it back in fullscreen in another monitor on your multi-monitor setup.

Probably your video card isn't able to do both applications with Overlay. Deactivate it in vlc.