I expanded on this idea and wrote a similar automator script that serves as a plugin for finder instead of a standalone action. Instead of running the network or the local script to change the preference with mine you right click on the video in finder, select the plugin and the script will set your VLC cache preference to either 300 ms or 5000 ms depending on if it is a local or a network file.

http://thinkingdigitally.com/?p=6

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