Remote Buddy will always submit the VIDEO_TS folder to VLC. Usually, 
if it contains movies, VLC will scan the directory for movie files it 
can play back and start playback.

There is a known bug in VLC, though, where it *might* not work 
correctly with VIDEO_TS directories, if they are located in a disk 
image (dmg / sparseimage / FileVault). The same is probably true if 
you burned the movies on a CD/DVD and try to play it back from there.

DVD Player - on my MacBook Pro - will quit with an error message when 
I try to play back regular DVDs, if I'm inside an account that's 
FileVault-encrypted. Creating a new account that doesn't use FileVault 
did then let me play back my DVDs without problems.

Having said that: where did you store the movie files?

Best regards, 
Felix Schwarz