0.8.6 series can't be built easily. Have a look at 0.9.0 sources. (In our git repository).Extracting /Users/bharati/vlc-0.8.6i/extras/contrib/src/flac/src/libFLAC/ia32/.libs/libFLAC-asm.a
Note, you should be able to test without building, but with the nightlies. (nightlies.videolan.org)