It helped me recover some GoPro footage that went corrupt. You feed it a known good video from the same camera/same settings and then it basically uses the structure of the good footage to rebuild the bad footage. It worked a treat after I found a good file for it.
Have a look at it, you may find it helps you out.
I've seen files that mplayer won't play that VLC will (though I've seen more of the opposite), but when mplayer can't parse a file it tends to simply not play it rather than crashing. So I'm not going to use VLC on files from the untrusted internet.
[0]: http://i38.tinypic.com/34gkavn.jpg [1]: http://i.imgur.com/RWIAe.jpg
However, I just tried it is fixed already, I love VLC.
I ended up recovering most of the footage by re-recording the screen whilst it was playing in Windows Media Player. Not ideal, but it was a low-ish quality capture of a webstream anyway, so any quality loss wasn't particularly important.
In the ten or so years I've used it, I've only come across one file that VLC wouldn't play (excluded DRMed files) - a (possibly malformed) 24hr long MP4 I recorded a few years ago. Pretty much everything chokes on it (VLC crashes straight away), though oddly enough Windows Media Player handles it fine until you try to seek to a different time.
I've dabbled with other media players/codecs in the past, but usually end up back at VLC not long after due to its versatility. Impressive stuff.