The much awaited VLC Player app for Windows Phone was released in Windows Phone Store few days back. This app today got updated to v1.0.3 which fixes lots of bugs. VLC team developer tweeted the following regarding this update.
Some crashes after launching are resolved, as well as somme background audio issues. Now using embedded album covers, metadata from flac
VLC media player is a portable, free and open-source, cross-platform media player and streaming media server written by the VideoLAN project.
VLC media player supports most audio and video compression formats, files and streaming protocols.
VLC developer has confirmed that the current closed beta app will receive no further updates, so it is recommended that even beta users switch to this branch of the development.
Download it here from Windows Phone Store for free.