Fixed by installing non-free-codecs and aaplusenc from medibuntu.
** Changed in: vlc (Ubuntu)
Status: New => Invalid
** bug changed to question:
https://answers.launchpad.net/ubuntu/+source/vlc/+question/50375
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VLC could not find encoder "MPEG-4 Video".
https://bugs.launchpad.net/bugs/294583
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