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The VLC ActiveX plugin exits with an "Unspecified error" when embedding it into the LV ActiveX container. The VLC readme does say "Please note, that this code does not rely upon Microsoft MFC/ATL code, hence good compatibility is not guaranteed."
The best I've been able to do is embed the VLC plugin into a web page (as shown on the VLC site), then embed a Microsoft Web Browser object into a LV ActiveX container and call the web page from there. This works, but really limits what properties you can affect on the object.