Hi,
This is a request for the video/audio controls -- Play/Pause, Stop... -- to be embedded in the video screen like in the upcoming versions of QuickTime X and Windows Media Player 12. When you hover the cursor on the video screen of said media players, the control panel appears, move the cursor from the video screen and the control panel fades away.
I like using the CTRL+H to hide the control panel in VLC but then I have to hit the key combo again to bring the control panel again. Not having the video embedded in the interface does a similar thing but then you have two windows: The video player and the control panel.
Sorry if this feature has already been requested. I made sure to look at the past forum postings and also searched the forum but couldn't find a post about this feature request.
Love VLC!!!