I found a solution in the askubuntu forum that works for me. http://askubuntu.com/questions/736923/vlc-not-displaying-video-properly- in-fullscreen#
In short: Tools > Preferences > Video > Output change to "OpenGL GLX video output(XCB), save and restart vlc. This fixed both the blue screen and the occlusion for me! -- You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xserver-xorg-video-intel in Ubuntu. https://bugs.launchpad.net/bugs/1537053 Title: vlc screen always on top, buggly. To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-intel/+bug/1537053/+subscriptions _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp