The VideoLAN Forums

In version 2.0.1, when connecting to an http source on a local net, vlc tries connecting through the IE configured proxy before timing out. I use vlc to connect to my local satellite receiver and this is now impossible. If I disable the proxy setting in IE, everything works fine, but I need this proxy to access the internet. I use both too often to be constantly switching between proxy/no-proxy configurations.

Same here.
Add an option somewhere to ignore default system proxy.

Use VLC 2.0.2 or better.