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This is a bug report, not a question, but I could not figure out how to submit a bug report.

After installing VLC 1.0.5, when I click on a desktop shorcut to a folder, or a folder in Windows Explorer, VLC starts up insteading of the folder opening. Did not have this problem with 1.0.3. I uninstalled VLC 1.0.5 using Add/Remove, and reinstalled, deselecting file association options. Same problem. Uninstalled and reinstalled, deselecting ALL install options. Now works OK. I suspect something to do with VLC adding a context menu entry

So the default action of Open for folder becomes associated to VLC?

I am having the same problem, but uninstalling and reinstalling doesn't fix mine. I tried installing a different version, but the same thing happens. VLC tries to open everything except for Firefox. Microsoft Word, just about every other program aside from Firefox. I have to uninstall VLC to access other programs then reinstall it to watch videos or listen to music. Changing any of the preferences does nothing, nor does changing the options at installation.

This is a seriously aggravating problem that I've never had before. I don't know if I did something or if it's a glitch or what. If anyone has any idea why this is happening and how to stop it, I would be very grateful.

Currently I'm using Vista. I got rid of 1.0.5 and am now using 1.0.2 and I can't see any differences.

VLC cannot associate all types to itself. The list is limited to certain file associations (.exe is not one of them).

Well apparently VLC is trying to associate all file types to itself. I managed to get Firefox working, but VLC tries to "play" everything. I tried going into the "default program" settings and making sure VLC is not the default for anything, but that doesn't help either. It's like as soon as I install a version of VLC it automatically tries to open virtually every program on my computer. Is there a way to stop this?
*I should also note, however, that VLC fails to open anything that is not a media file. I believe the file it claims it is trying to open is a undf file. Now, however, there are no associations for other programs while VLC is installed.
Everything returns to normal when VLC is uninstalled. The problems only exists while I have it loaded on my computer.

Could you check from registry what kind of action is added for example to .exe files?

Same thing happening to me. for the time being I right click on folder icon and select EXPLORE from drop down menu. Would like to find out how to get original behavior back though.

Have you tried to uninstall VLC?

Same problem here.

I'm running Windows 7 Ultimate x64 and the only problem seems to be that when opening folders inside folders (or folders generally) VLC opens instead of the folder opening. I didn't change any preferences, just updated from 1.0.3. The only .exe that VLC opens for, besides the windows explorer, is dropbox. This really is a problem. Anyone come up with a solution?

I found if I deleted the following entries from Shell in the registry, the problem was resolved. Remember to make a reg backup prior for safe measures.

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Directory\shell\AddToPlaylistVLC]
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Directory\shell\PlayWithVLC]

File Folders then opened normally after doing so.

Funny enough mine never had a problem till today. I accidentally tried to open an exe and then an iso file with vlc and then almost every icon on my desktop turned into a vlc icon. Since then I've deleted vlc and all info under programfiles86 and restarted and reinstalled. regedit seems fine when vlc isn't installed, but once i install it i can not view regedit as that it too opens in vlc as an exe file. I hope there is a way to solve this because it is highly annoying to have to reinstall it every time. All games and exe files, browsers and maybe some other files all try to open in vlc. My version is 1.1.11 and i run Window 7 64bit.

also when opening files and right clicking the only option available say play with vlc play. But when the program is deleted everything is normal.

I accidentally tried to open an exe and then an iso file with vlc

?