ZodTTD has posted some work in progress news about his VLC port to the iPhone.

Quote:
A small but very important update has been made to the vlc4iphone beta.

All beta testers of vlc4iphone should update!

Here's what is new in vlc4iphone v0.9.9 BETA:
- A bug was fixed that prevented many users from playing most their files! If a file didn't play before, be sure to try now!
- The bug preventing iPod Touch users from changing the volume has been fixed.

This update is highly recommended, as most files were being skipped in a playlist, played out of sync, or not played at all!

Next up...a gpSPhone update,
ZodTTD

More...