same here, vlc just won't get detected anymore (even if it actually starts a vlc process). My vlc is 1.0.6. and I know that the option for vlc 1.1 is set to no.
I have reinstalled knots from ground (even removed data base entries).
It just seems to be broken now. Probably I need an older version of knots.
And ukki may have abandoned the ship (also, he said he would).

Sigh!