Core support:
* Statistics collection (bitrates, packets, connections, ...)
* Support for downloading updates

Input:
* Initial support for RTSP-over-HTTP (to allow NAT traversal)
* Linux DV (Digital Video - Firewire) input
* Improvements to the Audio CD input
- Separate playlist entries for the tracks
- Support for CDDB
* Support for more DVB (satellite) encryption modules
* Improved subtitles encoding support
* Improved support for playing MP4 files from the Web

Decoders:
* Cook (Real audio) support

Playlist / Services discovery:
* XSPF playlist support [ not included in 0.8.5-test1 ]
* Podcast support

Audio output:
* New JACK audio output

Video output:
* New video filters:
- magnify: allows you to zoom on part of the image
- gradient and edge detection: "cartoon-like" effect
- bluescreen: overlay parts of a video transparently on another one
* Logo video filter: can now loop through multiple images
* RSS video filter: display feed images. Support for Atom feeds.
* Improvements to the subtitles rendering

Stream output:
* Initial support for throttling users on VOD streams

Interfaces:
* System to inform the user and request information
- HTTP authentication
- Fatal errors
- ...
* wxWidgets
- VLM (VideoLAN Media Manager) control panel
- Improved media information panel (shows statistics, metadata, ...)
- Drag & Drop support in the playlist
* Skins2
- Support for Winamp 2 skins
- Improved playlist handling
- Support for popup menus, animated bitmaps, equalizer, ...
* OS X
- Embedded Video output
- new Go-To-Specific-Time feature
- Improved media information panel (shows statistics, metadata, ...)
- support for processing multiple items with the wizard in a single run
- option to save selections in the wizard for a session (default enabled)
* HTTP
- New default interface pages for VLC and VLM (including a mosaic wizard)
- A bunch of new RPN functions

Windows Port:
* MSN messenger "Now playing" support

OS X Port:
* Mac-Intel compatibility
* Enhanced support of various audio output devices
* Growl "Now playing" support

*Nix port:
* Ability to log to syslog
* Root wrapper to avoid running VLC as root

Developers:
* New libvlc API (not finished yet)
* Java bindings
* A bit more automatic testing