Zodttd has updated VLC4iPhone.

Changes:

In this release I have fixed many bugs, including the dreaded bug that caused many people not to see video in the last beta release. Some codecs (RTMP for instance) are still missing, and depending on the demand for them, I will add them and update to a later VLC version as well.

The only drawback is performance of videos of resolutions of 640×480 or greater. What I’ve done is lowered the decoding resolution of many formats of video at this resolution so now you are able to be play them at decent speeds. The quality of the picture suffers however. I suggest users of vlc4iphone to use videos of 320×240 resolution if possible.

http://www.zodttd.com/forums/showthread.php?t=5089