I used to stream h264 + AAC using the default x264 settings in an ASF container to http://www.veetle.com using VLC 1.0.5. Everything worked fine on their VLC 0.8.6 playback web plugin. After upgrading my side to VLC 1.1.0, Veetle's playback has been 90% gray. I can barely make out the movements in the 10% of the video that isn't gray. The player also crashes (stops playing) after watching for 10 seconds. Does anyone know how the x264 changed from 1.0.5 to 1.1.0?
If it helps, the beta release of Handbrake (http://handbrake.fr/) has the same symptoms when I use the MP4 container. Handbrake 0.9.4's output plays flawlessly with VLC 0.8.6. This leads me to think that both VLC and Handbrake upgraded their x264 and thus altered something important in the outputed h264 video.