Suggest you backtrack through this thread and check in detail...
You seem to be jumping to conclusions.
Firstly you have not confirmed you have an official genuine copy of vlc from Videolan website.?
Check this first
Then do a clean re install of the current version.
If that fails then try an earlier version.
The recent post by nobody.loopback has confirmed that Win7 is apparently working (perhaps with an initial glitch?) The comments renforce my earlier hints regarding the encoder being able to deal with the input(s).
i'd like, though, to ask, in case the problem insists
...etc
You need to address the what is going on or wrong with your current setup before trying to bodge a way around it.If the fundamentals are wrong then the rest will be likewise. It is working OK for me, nobody.loopback and probably many others who have not posted a problem. So either you are doing something wrong or there is something wrong with your setup.
You have not given much clue to what you have tried or done so it is V. difficult to suggest solutions.
I don't think wild speculation and guesswork is needed in your thesis?