I have my movies on the hard drive, with each initial directory name reflecting the name of the movie (with the VIDEO_TS directory under that). When you open the disk menu, and type in the directory path and play, it errors out showing the partial path (up to the first space). Granted, I can change the name of the directory, replacing spaces with underscore, but thought there must be a way to put qoutes on that second screen (ie, via the GUI, I haven't played with doing this on the command line) to have it accept the space. I tried both double and single quotes to no avail. One thing I didn't try is put a '\' (with out the quotes) before the space, maybe that would work.
I don't want to change the names if I don't have to. This is on the windows instance (XP to be exact) of vlc, version 0.8.0.