I dont think that VLC has been ported yet... but, all of these solutions seem to only resolve certain (playing) issues under OS/2 and eCS. And for that aspect, I am finding KMP or ffMPEG to be a decent solution.
Though neither KMP or ffMPEG include a pretty GUI (for OS/2), a GUI can be made to control them (and done pretty easily).
The problem I see is that all such solutions still lack the capabilites and sheer elegance of an OS/2 codec. The beauty of OS/2 and it's codec system is that once a codec is written that understands the following aspects: read & play, translate to raw data, encode to format - then every multimedia object can be transcoded to or from that format by right clicking on it. In addition, every OS/2 codec aware app can view, edit, transcode or save the particular file.
The problems I am aware of (through second hand related experiences) is making a good OS/2 codec can be difficult or daunting.
As of right now, I have not run into anything that KMP (latest version) wont play correctly... SWF videos, Quicktime, WMV, AVI, DVD files, whatever. For now, even with no fancy GUI to load files, it is still very easy to use KMP to play anything by simply adding associations to the KMP Player object.
The same goes for ffMPEG, which I currently use to convert whole DVDs to a Flash FLV video by copying the DVD contents (VIDEO_TS folder) to a hard drive and then using a simple Right Click in the folder, and selecting "Convert VOB objects to FLV" - which is of course a breeze with a little REXX app and adding the app to every folder's object menu at once (via WPSWizard in my case). In the example below, it creates an FLV folder by the date of the folder I copy the VIDEO_TS folder to, and then converts each VOB file to an FLV file in the appropriate FLV folder. The script can of course be easily modified to rename or place the videos anywhere (I do it this way because we have clients who provide us DVDs by date - 1 per each date).

I think the question here *now* is what direction are we taking this thread and/or what direction do we wish to see MM development proceed under OS/2? My preference are "native"
codecs. The current direction seems to be fancy GUIs for an
app that plays most formats. Having "native" codecs allows anyone to create an app that has a fancy GUI (very easily) but requires more work creating a codec than the other option - which is having an app that reads and plays most formats (with or without the fancy GUI). It is probably a lot easier porting something like Miro, KMP, mPlayer, etc to OS/2 and dump the video into a "Presentation Space" than to take the various format handling code and turning it into a full OS/2 codec.
So which do we all think is more important?