Hi Lady Fitzgerald
I posted with the same problem. Seems developers created a new problem that was non-existent in previous versions of VLC. I have been told that this will be fixed in 1.1.1 (from the looks of the forum, it seems they have a very buggy release in 1.1.0) I wait patiently for this minor release 1.1.1 to fix most of the bugs. Till then, I would suggest to delete 1.1 and do a google search for vlc for previous versions (most third party sites are always behind in their copies anyway) and your .m3u playlist files will work flawlessly again. In the developers defense, they are volunteers, so I wouldn't lay into them too hard. *smile*
Brent in Florida