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To make VLC the default player, try these:

METHOD [1]

On any folder with a toolbar, click on Tools then Folder Options. Select the File Types tab. One can select and set any default program for any registered file type from that section.
E.g., if there is a "DVD Video" in the list as there is for MS Windows XP, select it then click the Advanced button. A new window, Edit File Type, will open and the list of known, compatible executable programs will be presented. Select the one desired, in this case, Play with VLC media player, and then click the Set Default button. Next, click OK and then Close to close the Edit File Type window. One can repeat that for as many files as needed before clicking the "Close" button. E.g., perhaps the "AudioCD" would be useful to set for VLC.

METHOD [2]

Perhaps the easiest way is to set the VLC player as the default during the installation of VLC. As odd as it might sound, removing VLC from programs and then re-installing it will be the safest method for many people. All the file types are automatically selected, which you can change as desired. During installation just make certain that you clear any box that would cause the installer to delete your preferences and cache. If for some reason the installer fails to set the correct file types or gets overwritten by MS during an upgrade(or some other program), try [1] to fix it.

In Windows Vista/7, you can go to start>control Panel>default programs and there select VLC as default program.

Here’s to Good Karma