VLC 0.8.6 includes a number of significant new features, especially in the Mac OS X version which now comes compiled for PowerPC or Intel-based systems (or, if you prefer, as a single Universal Binary that works on both) and includes support for the Apple Remote infrared controller that ships with most recent Macs.
More generally - the Open Source program is also available for Windows and Linux - the range of formats handled by the application has been expanded with the addition of WMV9, VP5 and 6 (but not 6.1), Flash video and other codecs. Support for H.264 is "much improved" according to the VideoLAN team, and the software now supports Shoutcast video as well as audio.
The popularity of VLC - coupled with mention of the new release on Slashdot - brought so much traffic to the project's site that a low-bandwidth page has temporarily replaced the usual content. Despite that, the software could be downloaded quickly by midday Australian time.