The update you suggested indeed fixed the problem. Thanks!
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https://bugs.launchpad.net/bugs/880043
Title:
VLC, headphones, surround sound: front channels missing
To manage notification
You have vlc 1.1.12-1 from oneiric-proposed installed. Please update to
the oneiric-proposed version 1.1.12-2~oneiric1 that fixes your bug.
** Changed in: vlc (Ubuntu)
Status: New => Fix Released
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Bugs, which is subscribed to Ubuntu.
https://bugs.launchpad.net/bugs/880043
Title:
VLC, headphones, surround sound: front channels missing
To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+s