There is one problem I notice with the 0.8.5 build of the Active X plugin, which possibly nobody has noticed, but maybe it has been fixed in a later release.
In the VLC app preferences, if you check the option "Fullscreen video output" it will automatically open fullscreen when VLC is loaded in a webpage. This is cool.
BUT, if you uncheck the box, the javascript fullscreen method no longer works! That is not cool, so now I am not using the fullscreen button anymore, but telling people to click the video picture for fullscreen. That works ok, but this is still a bug I would say.
Another thing I noticed in IE, is that all ActiveX plugins require clicking first to be controlled. If you click the VLC object however the picture goes black, so this doesn't help when going from Fullscreen and then back again.
I was able to work around IE taking control of ActiveX objects by writing the object via javascript when the page is loading, and then IE doesn't even notice it