In order to fix the issue, go to Start > All Programs > VideoLAN and run the Reset VLC media player preferences and cache files utility. If it doesn't help, press Windows + R key combination, type dxdiag and click OK. After that, select the Display tab, check you video card model and download and install the latest drivers from the developer web page. Another solution is to completely remove VLC Media Player (Control Panel > Uninstall a program) and download and install the latest version available.