VLC 1.1 is here: hardware acceleration, WebM, extensions
So what's new in VLC 1.1? First and foremost, hardware acceleration has arrived for VLC users who run Windows Vista and Windows 7 or Linux. MKV HD support has been improved, and VLC 1.1 can now play VP-8 and MPEG-4 lossless videos. VLC 1.1 also sports a buffed-up Web plug-in which supports the WebM container and offers generally improved video streaming.
VLC 1.1's code has been optimized as well, yielding big performance gains (up to 40%, according to the official site). "Tens of thousands of lines of code [were] removed," states the VLC 1.1 news page.
Apart from improving VLC's ability to handle various media types, the biggest addition might just be the new add-ons and script framework. Yes, VLC is now extensible -- so expect to start seeing some awesome extensions in the coming days and weeks as developers begin tinkering.