The way i got this to work, is by following some guidelines I found in one of the DreamBox Fora.
Something with how to watch by using mediaplayer on a PC.
They stated, install the Elecard Mpeg2 Player, and the WinGrabE application.
Start the WinGrab, point to the Dreambox IP port 31337, fill in VPID and APID for the channel you want to grab ( as seen in the http page under "si" of the Dreambox ).
Then start mediaplayer point to the url mms:localhost:31337, i think even mms://localhost:31337/start.mpg, and you are watching that channel.
Now, when u use the VLC instead of media player, just do the same, and for stream-output, click on the transcoding options, and select eg WMV2 for the video codec, and mp3 for audio
I just got the dreambox this week btw, What a machine