Hi, I have the exact same problem.
It seemed to be a bit better before the last update. I agree with the post above, this is an awesome app, and long overdue in order to save time and resources coverting everything to m4a, but this is making it virtually useless at the moment...
Hi all,
One of the posts above makes reference to this workaround so I tried it.....
When the app freezes, do the following
1. Tap the screen once so the controls appear.
2. Tap the right arrow (ffwd) twice.
3. Click the 'Done' button, in the top left corner.
This will return you to the selection screen, where you can tap your video again and it "should" restart where it froze.......
Not perfect, but it definately beats having to crash the app, and start another app, then go back to VLC or having to completely reboot the ipad.....which will take a couple of minutes.
Give it a go, works like a dream