Hi Chris,
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I've been having similar problems to what you've been describing, but I hadn't even got as far as getting OLP to recognise VLC (for more than about 15 minutes).
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Having read your thread today, I have solved my video and audio problems. Thank you so much for your help!
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The only difference, that I know of, between your setup and mine is that I'm still running OS X 10.9.5.
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If you want to discuss anything, feel free to PM me, if that's allowed. See if we can work out your issue.
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Cheers,
Andrew