I'm using 0.8.4 and the sound issues (wrong discrete channels during DVD menus) I was having are corrected.
However, there seems to be a bug that is affecting video quality. There are occasional artifacts, small areas, or "flakes" of several colors, that appear and disappear seemingly randomly in the VLC window. This is especially evident when watching video with night or space scenes as in Star Wars. Very distracting. Could this be a Core Video issue? These artifacts are evident at all CPU speed settings.
VLC 0.8.4 on an Apple PowerBook 17" 1.5GHz G4, 2GB RAM, 128 MB VRAM on ATi Radeon Mobility 9700, M-Audio Sonica Theater and 5.1 powered surround system.