newest package of VLC unable to play videos (at least some formats)

After updating vlc to version 0.8.4-svn20050920-3+hal0ubuntu1 it stopped playing videos. For example a video that worked few days before the update now doesn't work but gives me an error:

VLC media player 0.8.4-svn20040920 Janus
[00000275] main decoder error: no suitable decoder module for fourcc `XVID'.
VLC probably does not support this sound or video format.
[00000254] main playlist: stopping playback
[00000275] main decoder error: no suitable decoder module for fourcc `XVID'.
VLC probably does not support this sound or video format.
[00000254] main playlist: stopping playback

Sound works but no video is seen.