With your network topology you could use the mjpg stream from the AXIS. This will need more bandwidth, but you will be able to access the stream from the camera. I don't see an other way.
Sadly this problem still exist with VLC 2.0.2 . Was there no libavcodec update with this release, or does this alone don't solve the problem? Well setting ffmpeg threads to 1 help.
I can't help you, but I can confirm that there is a problem with MPEG4 RTSP playback with the latest VLC Windows version.
This is what I noticed: viewtopic.php?f=14&t=100950
The problem is still there with 2.0.2 or 2.1.0 nightly builds.
H.264 RTSP streams are working. The problem is only there with MPEG4 video RTSP Streams.
It seems there is a problem with RTSP MPEG4 video playback with the VLC 2.0.1 Windows binary provided by videolan.org. I am using Windows 7. I tried to play this stream: rtsp://mediasrv.oit.umass.edu/densmore/nenf-boston.mov main debug: processing request item: rtsp://mediasrv.oit.umass.edu/densmore...