The VideoLAN Forums

VLC for iOS 2.0.x refuses any audio-only media playback. Basic support was added in VLC for iOS 2.1 along with Music Album handling. Future updates will further improve the current feature set by introducing media artwork display, playlists, playlist operations such as shuffling or repeat, and more.

That explains a lot. I was wondering about the lacking album art as well as only the local URL being shown instead of any title info when playing an mp3. Currently the files from a folder/album are being shown out of order despite being physically in the right order on my FAT32 USB stick. Also, the cover art from the files is loaded when brwosing the file list, but when I scroll down and up again, the icon is empty and the cover art is being reloaded (contrary to MediaConnect which shows all the files in order and the album art constantly). It would be cool if coming updates would mimic Apple's music app (8.4.1) cause it really rocks. It's a shame it can't play back from local DLNA servers. Thx.