Some months back, trying to use VLC on the XO-1.5 resulted in a green screen plus a system freeze. To play movies, I ended up using only Mplayer (with driver x11). That gave me a smaller picture.
Had not tried VLC for quite a while. Just now installed it on os110 -- and it ran. [Haven't had time to explore how well it functions (e.g., picture sharpness) -- but at least I can now say that VLC runs.]
mikus