VLC 1.1 which was released yesterday boasts lots of improvement and feature additions including:

For complete list of new features and improvements visit http://www.videolan.org

You can install VLC on your Ubuntu via PPA repository. Ofcourse, downloading from their site is an option but installing using repository is more convenient.

Execute the following commands in terminal to install the latest VLC player:

sudo add-apt-repository ppa:c-korn/vlc && sudo apt-get update
sudo apt-get install vlc mozilla-plugin-vlc

This will install the latest version of VLC on your computer.

Cheers!