How can I fix the following, borderline irritating issue? 
http://img14.imageshack.us/img14/7389/vlcg.png
I’ve tried all of VLCs different Video Output Methods. It didn’t use to have this behaviour either, it just began happening now. My taskbar is set to “Always Visible” as I hate “Auto Hide” and I don’t want my windows to go above or below it…
same problem here ! updated with kde 4.3.4 and last xserver. heeeeelp
The easiest way to fix this is to do what you do not want to do, which is to NOT select your task bar to “Always Visible”.
Yeah. I figured as much. It’s just sad that it pretty much regressed to this, because it didn’t use to happen.
I noticed the same change in full screen behavior with VLC after updating to KDE 4.3.4. Is it a bug that I should file? Apart from auto-hiding the panel, is there anything else I can try to make the fullscreen view to cover the entire desktop, taskbar included? (I tried as well different video outputs). Or it is an intentional modification?
The problem is that it’s not really full screen at all, in the classical sense. I’m sensing a bugfix coming 
Putting it this way, I ll trust your senses then 
Try right clicking on the image and going to the option: View, then select: Minimal View (Ctrl+H) and Fullscreen Interface (F11) 
I get the same problem with KDE 4.3.3 have tried changing video>output module>xvideo to “Alternate fullscreen method” and all’s that does is completely blackout my video output (without even changing to fullscreen mode nonetheless)wonder what this is? By the way It’s Always Sunny in Philadelphia is a great show you have good taste
issue seems resolved with the current version of VLC (1.0.4.pm.8.6.) offered by Packman repo!
I’m using the vlc 1.1.0 beta w/ Qt4 interface, which doesn’t have that problem anymore either.
The problem arise’s from the KDE widget panel’s.
By default they are normally set to not be covered, if you unlock your desktop widget’s, click on the “cashew nut” on the end of the panel and go to “more settings” then select “Windows can cover” it should fix it for now.
I think we will def see a fix to the problems though as it’s not just one program that’s affected, it’s quite a few when you maximise them or go full screen (does it with browsers aswell).