Improper fullscreen behaviour with intel linux driver.
I run 32bin openSUSE 10.3 on a Compaq nc6320 laptop, which incorporates an Intel 945GM video chip. VLC version is 0.8.6c downloaded from: http://download.videolan.org/pub/videolan/vlc/SuSE/10.3/i586/vlc-0.8.6c-4.4.i586.rpm (I tried the 0.9.0 beta package from the same repository too, but that has the exact same problem.)
When I switch VLC to fullscreen mode, the "full screen" video seems to be maximized az 1024x768 (my sceen size is actually 1400x1050) and appears in the upper left corner. (Mplayer and Kaffeine for example can switch to fullscreen properly.)
The problem occurs if I am using the "intel" driver of X.org. Using the "i810" driver or the Xgl server instead of X.org, VLC handles fullscreen correctly. (Although xvideo is not hardvare accelerated in the latter case.)