Following is my vls.cfg. Not much is changed. 
# vls configuration file (Example)

# Application wide settings
BEGIN "Vls"
  LogFile       = "vls.log"		# log file
END 

# Security informations :
#
# The section "Groups" describes which group is allowed to use which command.
# Each user who belongs to the 'master" group has all the power on the server.
# Each one who belongs to the "monitor" group is a "read-only" user.
BEGIN "Groups"
# --- Format: 
# groupname     = "cmd1|cmd2|..."
# --- Example:
  monitor       = "help|browse|logout"
  master        = "help|browse|start|resume|suspend|stop|shutdown|logout"
END

# The section "Users" describes each user
# Use "mkpasswd" to generate the encrypted password.
BEGIN "Users"
# --- Format: 
# username      = "encryptedpassword:group"
# --- Example:
  monitor       = "3BcKWoiQn0vi6:monitor"       # password is 'monitor'
  bozo          = "JKg2TpPerilnw:master"        # password is 'bozo'
END

# Telnet Administration
BEGIN "Telnet"
#  Domain        = "Inet6"              # Inet4 or Inet6
  Domain        = "Inet4"              # Inet4 or Inet6
  LocalPort     = "9999"                # Port to use for that purpose
END

# Streams sources declaration
BEGIN "Inputs"
# --- Format:
# InputName     = "Type"
# --- Example:
  local1       = "local"                # Local input example
  kfir		= "video"               # Video input example (mpeg encoder)
#  dvb		= "dvb"			# Video input example (DVB card)
END

# Inputs configuration
BEGIN "local1"
# --- Format:
#  ConfigPath    = "/path"
# --- Example:
# The configuration file is /usr/local/etc/videolan/vls/input.cfg
  ConfigPath    = "/usr/local/etc/videolan/vls"
END

# Video input configuration
BEGIN "kfir"
# --- Example:
 Device	= "/dev/v4l/video"     # Video4linux device (default is "/dev/video")
 Type	= "Mpeg2-PS"       # Stream type (default is "Mpeg2-PS")
END

# Video input (DVB) configuration
BEGIN "dvb"
# --- Example:
#  DeviceNumber	= "0"			# /dev/ost/dvr

#  Frequency	= "12553000"		# Frequency in kHz of the transponder
#  Polarization	= "0"			# 0 or 1
#  SymbolRate	= "27500000"		# Symbol rate

#  DiSEqC	= "0"			# DiSEqC address of the used LNB
#  LNB_Lof1	= "9750000"		# Local frequency of lower LNB band
#  LNB_Lof2	= "10600000"		# Local frequency of upper LNB band
#  LNB_SLof	= "11700000"		# Switch frequency of LNB
END

# Channel (outputs) declaration
BEGIN "Channels"
# --- Format:
# ChannelName   = "Type"
# --- Example:
  localhost     = "network"
  client1       = "network"
  client2       = "network"
#  multicast     = "network"  
#  localfile     = "file"
END

# Channels configuration
BEGIN "localhost"         # The client is on the same host as the server
  DstHost = "localhost"
  DstPort = "1234"
END

BEGIN "client1"                          # unicast example
  DstHost = "192.168.123.148"                # destination host
  DstPort = "1234"                       # destination port
END

BEGIN "client2"                          # unicast example
  DstHost = "192.168.123.150"                # destination host
  DstPort = "1234"                       # destination port
END

#BEGIN "client1"                          # unicast example
#  DstHost = "192.168.1.2"                # destination host
#  DstPort = "1234"                       # destination port
#END

#BEGIN "client2"                          # unicast with IPv6 example
#  Domain  = "inet6"
#  DstHost = "3ffe:ffff::2:12:42"         # destination host
#  DstPort = "1234"                       # destination port
#END

#BEGIN "multicast"                        # multicast example
#  Type    = "multicast"
#  DstHost = "239.2.12.42"                # multicast address
#  DstPort = "1234"                       # destination port
#END

#BEGIN "localfile"                        # file output example
#  FileName = "stream.ts"
#  Append   = "no"                        # rewrite the file if it exists
#END

Following is my input.cfg. 
# vls local input configuration file (Example)

# Main settings
BEGIN "Input"
  FilesPath = "/home/videolan/streams"
  ProgramCount = "5"                     # number of programs
END

# --- Format:
# BEGIN "program_number"
#   Name     = "program_name"
#   Type     = "type"          # can be Mpeg1-PS, Mpeg2-PS, Mpeg2-TS, or Dvd
#   FileName = "path"          # use this variable if Type is not "Dvd"
#   Device   = "device"        # use this variable with type "Dvd"
# END

# --- Example:
BEGIN "1"     # MPEG2 stream stored in /home/videolan/streams/Dolby.vob
  Name     = "dolby"
  FileName = "Dolby.vob"
  Type     = "Mpeg2-PS"
END

BEGIN "2"     # another file
  Name     = "canyon"
  FileName = "Dolby_Canyon.vob"
  Type     = "Mpeg2-PS"
END

BEGIN "3"     # Dvd
  Name     = "film"
  Device   = "/dev/hdd"
  Type     = "Dvd"
END

BEGIN "4"     # Dvd stored on a hard disk
  Name     = "matrix"
  Device   = "/mnt/data/matrix/VIDEO_TS"
  Type     = "Dvd"
END

BEGIN "5"     # tv tuner
  Name     = "tele"
  Device   = "/dev/v4l/video"
  Type     = "Dvd"
END

I had a lot of trouble getting the GUI to work. With the above configuration, I was able to watch a movie by calling:

vlc udpstream:@192.168.123.148:1234

Everything worked nicely. I would say flawlessly except for:

For some reason, I'm still unable to watch video off of my Hauppage card via VLS/VLC.  If anyone get theirs working, please email me a copy.