That is it.
I downloaded version 2 a few days back and I notice that VLC uses half the processor power throughout the session, especially when playing video.
Also hi-res movies at times, and randomly, appear distorted for a few frames and the audio skips. At first I thought it was hardware interrupts but it was not and downgrading to 1.1.1 solved the problem, so it is the version 2 that is the perp.