If you just try to play a single video, does it work? I've never made a playlist in VLC... always just played movies one at a time.
If single files play ok, have a look at the Videolan forum. You'll probably be able to find an answer over there.
http://forum.videolan.org/index.php?...27df92995e438f

Or somebody else here might have more clues?


Or maybe I've just misread the question completely!!!