It's possible this bug is identical or related to #528365:
vlc: Squashed and greyscale picture with x11 video output
I am using Debian sid, and find one solution to be:
apt-get install vlc-plugin-sdl
vlc -V sdl somevideo.avi
This setting can be made permanent in ~/.config/vlc/vlcrc :
vout=sdl
Note that I have debian-multimedia.org in my
/etc/apt/sources.list file.
--
Joel Roth
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