Seeing that I'm still having the same trouble that I had during my last post, I decided to post it on VLC's forum page and see what actually happens. These open source forums are generally pretty good, so I figured it'd be a good idea. I checked it with an MPEG1 file also, and it's still doing essentially the same thing. I think the linux firewall needs to be tweaked, so I may be asking for some help on that one from a friend of mine.
Stay tuned...AND KEEP PRAYING!!!