VLC is crap. I've used it many times in the past. It crashes so damn much on me, so, to me, it's not even with its file size, much less, the download.
I have had so much better luck with MPlayer OS X v2 beta. And I've been on a luck streak with it lately...it hasn't crashed (too much), and it's been playing almost every AVI file I throw at it. (Oh, and MPlayer works fairly well for MPEG files as well.)
Hell, if need be, give both a try, and see which you like better (or at least which works better for you).
__
Speaking of not repeating topics, has anyone heard rumors about new Powerbooks coming sometime soon?