Mabye im incorrect, but ive tried everything I could think of and it seems that the new 0.9.2 no longer works with ISCSI (Networked CD rom drive). It just skips very badly. Other media players (like WMP and Media Player Classic) do just fine.
What im doing:
I have a XP server with a shared ISCSI CD ROM drive.
Another computer connected with Microsoft's ISCSI initiator connected to server.
Telling VLC to play DVD. Skips incredibly badly and crashes.