Hi seqiro, how can I roll back to version 1.1.10.1? Thanks.
I just figured it out. First uninstall the latest version of VLC. Then download the appropriate previous version from here for Mac OSX:
http://download.videolan.org/pub/videol ... .1/macosx/
...and install 1.1.10.1 again. Now the audio device option with encoded output is no longer greyed out and is now available again for those of us who wish to use a cinema surround 5.1 device, until this bug is fixed in the next update.