I have installed VLC on a Windows ME system (yes I know, ooold system). After replacing the wxWidgets from the current version with that from an older version as suggested elsewhere I could run it just fine.
There's a problem with the Mozilla plugin however. It does not return all MIME types. The browser will not play videos with MIME type application/x-vlc-plugin for example.
"about:plugins" shows some MIME types but the list is incomplete. I suspect there's a size limit to the resource where the MIME types come from on Windows ME. As I only wanted to play "application/x-vlc-plugin" I was able to get this to run by shortening the string with a resource editor.
I don't think there's a remedy for this except maybe putting the most commonly used types at the beginning of the list, but I wanted to share my findings in case somebody else has the same problem.