Looking at the VLC code, it seems that the "Failed to wait (VIDIOC_DQBUF)" error is returned by vlc when the VIDIOC_DQBUF function of the v4l2 driver returns the error code EIO.

And looking at the maemo bug list, I found a patch from Sakari Ailus dealing with this error :
https://bugs.maemo.org/attachment.cgi?id=661

"vidioc_dqbuf returned -EIO in a number of cases which is probably a bit confusing for many programs. This patch changes behaviour so that the next intact frame is always returned (i.e. never -EIO anymore)."

I don't think this patch is applied to the current kernel because I don't see it in the source code, but I think it could do the trick.

Lokidor