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As long as I've used VLC I've never known this to exist but a bit of research has shown otherwise. However, I don't seem to have them and if there's a way to enable them in Windows 7 then I haven't run across it yet. Am I missing something?
I use one of the 1.2 nightlies, but I don't remember them being in the 1.1.9 build for me, which is why it was a bit of a surprise to learn it's supposed to have them. I have a friend who uses the 1.1.9 build on his Windows 7 and he tells me he doesn't have the peek controls either.
I've figured it out and I don't know if it's a bug or unfortunate limitation/feature. I've reset all my preferences and they returned. So then I started experimenting with what preference was conflicting with it and I've found that I apparently can't have the video on top of all windows while playing if I want to keep the aero peek controls and I have to restart VLC to get them back.
I just found out that Aero Peek is unable to show video continuously (freezing) when you hover on taskbar thumbnail of VLC during video playback. In Wmp, no prob.