There have been a large number of bugfixes with the latest VLC release,
1.0.1-1ubuntu1. Can you reproduce your issue with this latest version?
You can test this in Ubuntu Karmic, or Ubuntu Jaunty with the MOTU Media
PPA at https://launchpad.net/~motumedia/+archive/ppa . Thanks in
advance.
** Changed in: vlc (Ubuntu)
Status: New => Incomplete
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Cannot transcode to mp2v/mp4v
https://bugs.launchpad.net/bugs/304887
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