video display not working on ver 2.0.1

I have been running VLC Media Player ver 1.1.11 with no problems and have tried to upgrade to your latest version 2.0.1 but have issues with it.

Specifically, I get audio, but the video display is highly distorted showing only gray bands with splotches of color. Audio comes through OK. I have tried all formats of video including running DVD's through your player but get the same result.

I am running a Dell Dimension 2400 with 1 gigabit of RAM on a Windows XP platform. I have been to your help sites but find no help for this issue. I would appreciate knowing what is causing this as your older version gives me no problems.