VLC was - technically - never an outstandingly good player. The cumulative video quality with the "built-in" codecs - ffdshow IIRC? - is rather bad, visible artifacts and all that. Whenever I have to use VLC for anything, I choose "use system codecs" - also ffdshow for me -, and for some weird reason it has a significantly better quality then; but what's the point to use VLC then?
Oh, and its "200% volume" feature is ridiculous. Take the worst meaning of "loudness" you can imagine; VLC will make it even worse.