I don't think the codecs pack is needed if you don't use the old Windows codecs, could simplify that a bit.
Good tip - the next time I build it I will definitely try without the codecs.
I gather our package vlc did not cut the mustard?
When I first started on this project, playing 1080p video was not a constraint and for many reasons VLC looked like a great option. (Like the http interface - hence compiling vlc-full.)
However, my boss decided he wanted high-def video and when I researched getting hardware acceleration working in VLC on Linux it looked a little painful, judging from many forum posts across the interwebs.
So before I started down that road I looked into just using the player that VLC uses - MPlayer, and haven't looked back.