What are MPEG-2 TS and MPEG-2 PS? 

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.

What are MPEG-2 TS and MPEG-2 PS? 

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) .
    1. If you see a line :

      [00000107] main module debug: using demux module "ts_dvbpsi"
      it means the file is MPEG TS .
    2. If you see a line :

      [00000109] main module debug: using demux module "ps"
      it means the file is MPEG PS .
    3. 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. .
  • the sequence header of the video must repeat itself regularly, which is often the case with MPEG-2, but very rare with MPEG-1. There is no easy way to know if the sequence header is repeated regularly. Files with a .vob extension are normally MPEG-2 files and files with .mpg or .mpeg extension or usually MPEG-1 files .

You can download this streamable MPEG-2 PS file for your tests : presentation_short.vob .