For the use of 1.0.5. I will mention there are two known vulnerabilities:
"Gjoko Krstic has discovered a vulnerability in VLC Media Player, which can be exploited by malicious people to potentially compromise a user's system. The vulnerability is caused due to a race condition error when creating bookmarks and can be exploited to corrupt memory by tricking a user into creating a bookmark while playing a specially crafted file"
http://secunia.com/advisories/38853/
VLC media player suffers from various vulnerabilities when attempting to parse malformatted or overly long byte streams. If successful, a malicious third party could crash the player instance or perhaps execute arbitrary code within the context of VLC media player. Exploitation of those bugs requires the user to explicitly open specifically crafted malicious files. The user may refrain from opening files from untrusted sources.
http://www.videolan.org/security/sa1003.html
http://secunia.com/advisories/39558/
The VLC team has 'released' a 1.0.6 to resolve these security issues (excellent!) -
but - for reasons of their own will not be compiling and releasing binaries and installer for 1.0.6.
viewtopic.php?f=2&t=77956
Maybe they just want to move on to the work of supporting and maintaining the 1.1.x. and do not want to get into any possible new issues introduced into the 1.0.x branch. In any case - this is their decision to make.
VLC is open source and there is lots of documentation. There is nothing to stop anyone from compiling, releasing, and hosting a complied binary and installer for 1.0.6. There is a wiki page about compilation (see menu bar at top of forum) and plenty of help and discussion available. If you do this - put a torrent somewhere and link here. ; )
I need to use 1.0.5 now and then because of an encoding issue of some kind in 1.1.0.
viewtopic.php?f=2&t=79703
When not using 1.0.5 I revert to 1.1.0. My files are trusted so personally I am not concerned about the security issues. When installing 1.0.5 I deselect 'mozilla plug-in' and 'activex plug-in' from the installer screen to mitigate against possible drive-by exploits through IE or Mozilla based applications.
Sometime I might investigate side by side installation of 1.0.5 and 1.1.x - or better still - use portable distributions of VLC to get the same effect. By the time I get round to it the encoding issue I am having trouble with might be resolved. Running 1.0.x and 1.1.x side by side might again come in handy for investigating and reporting any future changes.
Freedom!