Do you happen to have an exact version number that was working from debian builds? I am also encountering this in 0.8.6 Ubuntu builds, and tried to roll back to an older 0.8.4 based one but only had worse problems:
Using vlc-trunk of today (20071027) there is still no sound with DTS/AC3 using the spdif pass-through.
VLC media player 0.9.0-svn Grishenko
[00000001] main libvlc debug: VLC media player - version 0.9.0-svn Grishenko - (c) 1996-2007 the VideoLAN team
[00000001] main libvlc debug: libvlc was configured with ../configure '--prefix=/home/insecure/vlc/local' '--disable-zvbi'
[00000001] main libvlc debug: translation test: code is "C"
VLC version 0.9.0-svn Grishenko
Compiler: gcc version 4.1.3 20070929 (prerelease) (Ubuntu 4.1.2-16ubuntu2)
Based upon svn changeset [22864]
This program comes with NO WARRANTY, to the extent permitted by law.
You may redistribute it under the terms of the GNU General Public License;
see the file named COPYING for details.
Written by the VideoLAN team; see the AUTHORS file.
We are totally not going to revert this at this point in the release schedule. We know it's going to screw many many users if we do so. At least AC97 was badly broken before this change. Given the commonality of the device, no way we revert unless we get warranty from ALSA developpers that this won't bring back the heavy stuttering problems.
(In [23022]) alsa: use the pcm status to compute the delay. fix #894 (closed) (spdif passthrough)
Please report loudly any regression, using spdif or not.