...you run VLC 0.8.6b on OS 10.3.9 you also got Quicktime 7.1.5 ?
Nobody (OSX.3.9) was able to run it without downgrading QT 7.1.5 to QT 7.1.3. so you are the only one?
I have both versions of these players on OSX.3.9 and have no problem with VLC (or even FinalCutPro)