here is a screenshot of my television while using vlc to watch a movie. All video just shows as black.
http://magz.home.insightbb.com/blackness002.jpg
All i know is that i used to watch all my visual media on my PC through my TV with http://www.xboxmediacenter.de/ and it worked great. Although, it was designed for that purpose and that purpose alone, but it did do a great job.
Everything else works with the tv-out, it shows high res games great, text is a little fuzzy, but i heard thats common.
Any help is appreciated.