VLC is the biggest POS I have ever installed on my Mac (as far as I can remember.) Who cares about licensing and streaming when the app is not even able to keep with video playback on latest hardware. What a joke! Hideous UI, buried options (try removing color or reizing subtitles), even worse: skipping frames while zero tasks running on latest i7 with 8GB RAM and 7.2K HD (I've checked with top) !!! What a crap. So I said: VLC, go away! I switched to MPlayer and all of those issues went away from that very moment. Good riddance.
I browsed the net so much trying to fix these problems and never heard about this situation with Mac OS X. You got people out there who probably could contribute if they knew. Are you sure about this? The Mac OS X port is so bad, I would encourage VLC to scrap it until they can fix it, instead of giving false hopes to users.