During a break editing today a client decided to show me some of their past projects. They were encoded by someone at some point as .AVI's but they were skipping. While we were watching them she apologized and mentioned that all AVI's seem to skip for her.
So that got me curious and I played the same file with Movist which played back without skipping but I mentioned to her that Movist hasn't been updated for about 8 months so don't rely on it forever. However, the skipping problem was still bothering me in VLC. Checking her console logs I found mentions of first frame isn't a keyframe over and over aligning with the skipping. Not much to do about that as far as I know but there were some delay errors listed as well.
So delving into it's complex array of preferences I found the Caching Value which was set to 300ms. You can get there by hitting COMMAND + , (comma) in VLC and then clicking on the "All" radio button, Access Modules > File. Whew.
At the top you'll see "Caching value (ms)" and some number, likely 300. I just bumped it up to 1000 (1000 ms = 1 sec) and hit save.
The skipping is a lot better but there still is the occasional glitch as well as some very brief audio skips. I'm still not sure what can be done about them since Movist seems to handle the same file on the same hardware without issues. It may be some bug in VLC, I'm just not sure.