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Just take VLC window and drag it to any side of the screen, so part of VLC window must be out of desktop. And you will see this bug.
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Upper one is overlay render, bottom one is software render.
You see the match score in top right corner? Now I will move windows to the right.
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The overlay window can not move outside the screen.
Now if i drag window up and down it will look more crazy.
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It's only in 1.0.3, in 0.9.x-1.0.2 all ok.
It's not a QT GUI bug, it happens with any other interface or without any or with libvlc-based app.
If this bug importance will be low, then I just don't know what to say...