Bug#662628: Workaround.

[Joel Brunetti]

A workaround may be possible.

I had similar problems with this package and found that if I change
the Video Output to "X11 video output (XCB)" from "Default" VLC will
play videos.
The problem for me was that the package was defaulting to "XVideo
output (XCB)" which was not found. Trying to play videos would then
would peg my processor resulting in having to Kill the process.

I'm not sure what changed in the package upgrade to cause this problem though.

Good Luck!

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