Not to pimp (as I am a VLC user as well)... but CorePlayer Mobile for the iPhone will be available on the AppStore soon after its launched. See the video demo from back in Feb. here: http://www.youtube.com/watch?v=Lx-Vp3IVjbg
It will support:
Audio: MP3, MP2, WMA, AAC, MKA, Midi, WAV, APE, OGG, Speex, WAVPACK, TTA, FLAC, MPC, AMR, ADPCM, ALaw, MuLaw, G.729, GSM
Video: H.264 (AVC), AVCHD, MKV, MPEG-1, MPEG-4 part 2 (ASP), DivX, XviD, WMV, MJPEG, MSVIDEO1
Containers: Flash/FLV, Matroska, ASF, ASX, AVI, PS, M2TS, TS, 3GPP, MOV, MPEG-4, OGM, NSV
Streaming: HTTP, UDP, UDP Unicast, RDP, RTP. RTSP, RTCP (keep alive), ASX, ASF, Multicast, HTTP Tunneling
Also we are adding an embedded RSS Reader and and Twitter Component for the iPhone launch. The staff here at CoreCodec will be at WWDC doing demos... if anyone wants to get together for us to show it... just send me a PM.
Ummm, what's the price comparison of CorePlayer versus VLC?