The link I posted to goes to the last 1.X branch of VLC. In the 1.1->2.0 transition, the VLC developers changed lots of things. It's almost a complete rewrite of VLC. It maybe a bug with VLC's decoding engine. I'd suggest submitting a bug report to them in hopes of getting it fixed. They're still developing for PowerPC and trying to make it better. Until then, you may want to keep using VLC 1.1.12.