Nevermind. I found a workaround. I just copied the vlc.mo file from the locale/en_GB/LC_MESSAGES to the locale/zh_TW/LC_MESSAGES folder. THEN I could locate Settings/Preferences/interface/language (scroll menu)! As a note to the developers: it might be useful to ASK the user what language to install...
I just installed VLC on my Chin Win98se system, but I do not read Chinese (my other family members do). Your streaming install routine detected the system language settings and chose Chinese language menus. How can I tell it to install in English, or else, download a pure English install module?