There is a new libdvdcss out. VLC comes with dvdcss.dll, which libdvdcss comes with dvdcss2.dll. Can VLC use dvdcss2.dll?
By the way, I tried playing DVD on Windows XP, and that works the same as OS/2. Reading further, Windows Media Player did not have decoding. I downloaded VLC 2.2.0 for Windows, and DVD plays fine.