The following is based on Using Airfoil with VLC.

When viewing a movie and streaming the audio track to a different computer, one can synchronize the audio by:

• Increasing the cache (file cache in case it is a file). This is really a lookahead cache of the movie file
• Decreasing the audio desynchronization compensation value. This is a time reference for the movie's audio track to either play ahead of the video or before the video and it is a relative offset of the audio track to the video track.

The relevant settings are in:

Input / Codecs → File Caching Audio → Audio desynchronization compensation

For example, on a 10Mbit ethernet local connection, the following settings perform fine:

Input / Codecs -> File Caching -> 6000ms
Audio desynchronization compensation -> -2000ms

These settings are particular to a certain set-up so you can modify these values and figure out what works best for you.

When playing videos over the network with VLC, you may notice some stuttering along with the video appearing garbled for a short while. In order to work around that problem, the solution is to increase the VLC caches since the defaults are very small.