I just upgraded from vlc 0.8.6 to 0.9.2 which adds a new Qt4 user interface, fullscreen controls, improved playlists, album art support, and new file format support.
To upgrade to the latest version of vlc follow these simple steps:
1) If you already have vlc installed, you need to remove it with
2) Add the new repository. Open System->Administration->Software Sources->Third-Party Software
sudo apt-get remove vlc
Close Software Sources, and when prompted, choose to reload the repositories.
deb http://ppa.launchpad.net/c-korn/ubuntu hardy main
3) Install the new version of vlc with:
sudo apt-get install vlc vlc-plugin-pulse
I found the steps to upgrade vlc from tombuntu.com I'm gonna have to add that site to my rss reader.