According to the VideoLan site, there is a Plug-In for Firefox that will enable VLC to be used for streaming video and audio within Firefox. The Plugin works with the 0.9.8 release and if you go to the VLC site and search the forums for Firefox Plugin White Screen, you will get the instructions for how to get everything working properly.
Hope this helps...
PS here is a link to the topic I was referring to above:
Code:
http://forum.videolan.org/viewtopic.php?f=14&t=48861&p=155986&hilit=firefox+plugin+white+screen#p155986