Convert JPG to Video for playback in VLC
You can use a "stopmotion" maker: here's an overview of them, and one to download: CellSoft Take5 1.30
Even you can also use Picasa 3 which has a feature that does exactly this - basically, it saves the slideshow into a saved video file - works nicely.
I use mencoder to assemble a series of jpeg frames into an avi, which can then be easily played back in VLC
mencoder mf://*.jpg -mf fps=24 -ovc lavc -lavcopts vcodec=mpeg4:mbd=1:vbitrate=12800:autoaspect=1 -o video.avi
you may want to play with the lavcopts but that should get you going...
ps. I tried to do this with VLC itself but just couldn't figure it out