VLC doesn't maximize properly - blue frames

[erve02d0]

When I maximize the VLC screen, i.e. double click inside the VLC window, VLC does expand to full screen, but everything outside of the original size becomes blue. How do I fix this? Also, the actual "movie frame" covers everything else, i.e. if I open the terminal and it intersects with VLC, the "movie frame" is always in front.

Problem is with an LL-only desktop (and LL-only laptop, but that's not as important). Hooking up the screen (brand: HP) to my five years old Windows 7 laptop it works flawlessly.



(Bonus question: where do screenshots go?)