Ok I updated the readme to try to be more clear that you don't always have to wait several hours (it has realtime options available, too)
I have updated the VLC wiki with an example of muting/skipping:
http://wiki.videolan.org/XSPF#Example_o ... extensions
It's not quite as bad as I remember it.
Just be aware that if you playback DVD's in VLC, the timestamps will be off [1] but I have found timestamps to work quite well with video files that have working indexes (i.e. most files, but not certain types of mpeg), so it might work well for video files.
One thing I'm not quite certain of is whether VLC jumps "forward" or "backward" to the nearest i-frame when seeking. If it at times jumps backward, then your XSPF file might still be inaccurate, so might need some extra padding of numbers to ensure it avoids the [questionable content].
re: database of EDL's: sensible cinema hopes to eventually have one. I mean it already does, for like 20 movies, but it's still in development.
I could even add an option to sensible cinema to make it spew out VLC XSPF files if you so desired (it already used to, but I disabled it since VLC didn't seek quite right in DVD's)
re: virtualdub: windows only (it does do frame accurate splitting, apparently, which is nice). It also didn't work with mpeg2 streams when I tried, it, which made it non-ideal originally. Mine could definitely use more speed
Cheers!
-roger-
[1]
http://trac.videolan.org/vlc/ticket/4