Ok I got it installed.
Here is a step by step procedure:
1. Add rpmforge repository,
rpm -Uhv http://apt.sw.be/redhat/el5/en/`uname -i`/rpmforge/RPMS/rpmforge-release-0.5.1-1.el5.rf.`uname -i`.rpm
2.Then check if you have the following libraries: libdvdread and libcaca
If you have them installed then a very good possibility is that they were downloaded from yum, so erase them.
yum erase libdvdread
3.clean up yum
4.install vlc dependencies from rpmforge
yum --disablerepo \* --enablerepo base,updates,rpmforge install vlc
And it is done.
I used the following reference -
Also you need not go for step 2 and 3 if the libraries are not already installed.
I had a hard time installing vlc. Was trying for a day or two.
My message to all linux newbies,
keep trying, you will succeed and keep up the spirit of open source! \m/