VLC 1.1.12 is now available from videolan.org and through the internal updater. As said in the previous news item, this release fixes the optical audio output broken in the last update as well as on OS X Lion.
Additionally, the update includes a fix for a security issue in the included HTTP server (which is admittedly rarely used by most folks) as well as a few other minor improvements, e.g. a crash in the About panel when using the Japanese locale.
For more information on the security content included in this update, see VideoLAN Security Advisory 1107.