http://w3-mcgav.kddilabs.jp/mpeg/mpes/faqe.html
In the MPEG-2 standard, there are two types of audio video synchronization, TS and PS. TS is Transport Stream which are aimed for communication and broadcasting applications. PS is Program Stream which can be used for storage applications such as DVD. Therefore, it is recommended to select each type according to application and playback specifications.
http://www.tldp.org/HOWTO/VideoLAN-HOWTO/x646.html
VLS can stream MPEG files that meet two critera :
the file must be MPEG PS (Program Stream) or MPEG TS (Transport Stream), that contain video and audio multiplexed. VLS cannot stream MPEG ES (Elementary Stream), i.e. a file with only audio or video .
In order to know if an MPEG file is MPEG PS, MPEG TS or MPEG ES, read the file with VLC and look at the messages (select in the menu View / Messages, or use the command line vlc -vvv) .
If you see a line :
[00000107] main module debug: using demux module "ts_dvbpsi"
it means the file is MPEG TS .
If you see a line :
[00000109] main module debug: using demux module "ps"
it means the file is MPEG PS .
If you see a line :
[00000109] main module debug: using demux module "es"
it means the file is MPEG ES, VLS can't stream it. .
You can download this streamable MPEG-2 PS file for your tests : presentation_short.vob .