VLC people have rendered in the bug as invalid stating that there is some 
problem with the XServer on my desktop as they have tested it in all conditions 
that VLC is working fine.
The bug has been closed in the VLC development forum.
Hence something is wrong in the Ubuntu X server and its configuration on my 
Desktop.
Please help what can be wrong

I am using Nvidia propriety Ubuntu recommended drivers for my Nvidia
9800GT graphics card.

-- 
gnome-panel assert failure: gnome-panel: ../../src/xcb_io.c:385: _XAllocID: 
Assertion `ret != inval_id' failed.
https://bugs.launchpad.net/bugs/668537
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