I have a fully updated MBP, Mountain Lion, running the latest version of VLC just reinstalled a couple days ago. My stuttering problem, actually a pausing/freezing problem, is making VLC nearly unusable. The size/quality of the file doesn't have too much of an effect although extremely large files like blu-ray rips do seem to exacerbate the pauses. I have a network share I use for my media files but the problem is precisely the same if I copy the file to the local machine. I can view these files with no transcoding using XBMC or other media servers across the network or locally. I travel a lot for work and usually my internet access in the hotels isn't enough to stream blu-ray rips so I rely on bringing media files on a USB external....which means I have to deal with the stutter or use another media player. I love VLC but this problem is getting too much.
Just checked my system resources when this problem was just happening with a file on the local HDD. Processor usage was only 11% and I had appx 4Gb of RAM out of 8 total free.
I have increased the cache as per many, many posts that say that is the solution but that only seemed the make the problem worse or no change depending on the file.
I'm not very knowledgable on video codecs or formats, so forgive my ignorance on that front. What can I provide to help troubleshooting?