I have heard this argument before and as long as you believe it the problem will never be fixed.
Even Microsoft recommended updating your audio and video drivers after SP2 for XP as that's when most people got DirectX 9c. But it never really stopped there. As APIs change and are updated you must also stay current. If you don't want to do this go back and use an older version of VLC. 0.8.2 for example, does not require updates and should run with SP1 and earlier, Windows 2k and 9x - me. Many users are asking why it seems to run better, Yet! I stay current and don't see their problems!
BTW I don't have sound skipping or lip sync or jitter problems either and my dshow system is up to date with VLC so I can always get a second opinion. In fact three out of the last five downloads ran better in VLC than they did in dshow and one of them was a WMV3. The other two ran about the same or equal. But I'm constantly looking for dshow codecs and updating and running comparisons which most people don't or won't do! I have also gathered a set of tools that keep me from having conflicts in dshow and know what stuff to stay away from. Not saying the system is perfect by any means because if I were to reload the system I know I would do it differently.
Now I have talked about Windows allot here, but VLC is a single source code that is compiled on the box and operating it was intended for as such it is highly dependent on that operating system and the hardware installed. When VLC has a problem is shows up in all operating systems. When your system has a problem you are alone or perhaps you can find a few other sympathizers who share your dilemma like this thread.
But you will notice no one here has mentioned an operating system or any thing else specific and every one believes the problem is VLC, so I guess you are in the right place.