Hi there,
Sorry if this is a bit odd. I have never had a problem with VLC's audio (in fact, I still don't, except for this...) If I run my audio straight from my Mac Mini's output to my speakers, I don't have a problem - I am running various avi's I know have audio and will work if plugged in like this. The audio in system preferences is then, in this case, set to 'Internal Speakers'. Recently, though, I purchased an audio interface for inputting XLR / TRS inputs for music (it is a Tascam US-144mkII) so I can plug in microphones, guitar plug, etc.
It connects via USB, and allows for a 'line out' to the speakers - with a knob that enables one to go from 'input' to 'computer' and mix in between. This is so if you want to hear the audio directly as it's being inputted for recording purposes, or if you want to hear the output direct from the speakers / phones. In either case, I have this set up as my main output now, and everything is outputting perfectly to it - Quicktime, random system sounds, youtube, et. al. However, when I start up movies in VLC, I get no audio whatsoever. What gives? Is it just not going to work or is there a workaround? When I go to devices, the US-144mkII is selected as it's output. Anything I should try? I've got time on my hands.
Also, just checked this with DVD's, still same problem. DVD player built into Mac OS X will play the audio from a DVD, though.
Thank you,
Ryan