The wait for VLC 1.2.0 is close to an end as the development team just launched a pre-release for this version.
It is a major version, so changes abound; they affect packagers, codecs, demuxers, audio filters and output and video filters. Additionally, a hefty set of modules has been removed.
One important note for Windows users is that this version works only with Windows XP SP2 or later. Earlier Windows editions (Windows 2000 SP4, Windows XP < SP2, Windows 2003 SP0) are no longer supported.
Also important is the fact that almost every video filter can now be transcoded and it can be ported to mobile operating systems (Android and iOS) as well as 64-bit Windows.
Blu-ray support relies on the VideoLAN project libbluray and it can currently open unencrypted disks and backup folders; for commercially encrypted media a special setup is required.