@Andrew L That means that the DLLs can't be located. I just tested with system32 and it failed to located the DLLs. Try adding a directory to the path environment variable rather than using system32, or run paused and copy into the build folder.
What version of VLC should one use? I tried it, it complained about not finding an entry point, then went into an infinite loop complaining it could not find the complaint message, not even the task manager would kill it. DLLs and plugins were in the folder of the compiled app ( plugins in their own folder ).