I did more digging on this one and have determined that the issue is with VLC itself. I installed VLC 1.1.4 on Windows and I see the same issue. But after I downgrade to VLC 0.9.9 (Which is equivalent to Ubuntu Jaunty's VLC version), I do not see the problem. I have opened a forum topic on VideoLAN to see if I can get help from experts over there.
I did more digging on this one and have determined that the issue is with VLC itself. I installed VLC 1.1.4 on Windows and I see the same issue. But after I downgrade to VLC 0.9.9 (Which is equivalent to Ubuntu Jaunty's VLC version), I do not see the problem. I have opened a forum topic on VideoLAN to see if I can get help from experts over there.