Hi All

Well this works but no sound...
"If you are running KDE, the simple thing to do would be to...

1) Click your KDE Start Menu.
2) Applications/Multimedia/Video folder (If running PClinux, Kick off menu)
3) Right click VLC and "edit item" (KDE Menu Editor)
4) Second last option on right side (check box "Run as different user")
5) Enter a profile user name on your computer other then root.
6) Exit and save changes."

So the permissions of the lowly user are not good enough to have access to the sound system.

So:
[as root - open terminal window]
cd /dev
chmod 666 dsp

vlc now has sound when run as a 'user'.