A little math might help to know what's going on ......
We talk about a laptop here if I'm not mistaken...... so you talk of an LCD monitor integrated to your laptop ..... witch is a year old .....
The best integrated LCD for laptop has a response time of 12 ms ...... and this is the constructor spec (much time, it's the best response time between two colors only ..... not all colors) ..... but let's say that it respect 12ms for all cases.
Your video is 120 fps ...... it means that there is a new image each 8.3 ms (1s/120 frames) ..... So first, technicaly, it's impossible to your screen to show you really 120fps with or without vlc or a game.
Let's say that you have a real LCD that respect 8ms or a 6ms of response time (witch does not exist ...... 8ms or 6ms exist, but none respect for all the image). Even here your monitor can't show you that speed of image ..... because you have connected it thru a VGA connector (and not DVI). And with VGA it need to be converted to digital ..... and this process can't be that fast due to the enormous amount of data and the electronic response time of the needed components.
Everything here is without saying that, normaly, in a laptop, they disminish the speed of all bus .... for reason of energy saving
Now why It's not the same with other players and you see it weird with VLC ?
Because vlc is showing you at 120 fps but your screen can't show you that much and need to "jump" some frame or "fuse" some frame ..... Other players adapt their velocity to the screen to avoid this effect
I hope that I've remained clear
Sorry but you need a good CRT monitor and a real computer (not laptop) for what you wish for ....