This can play anything that I have ever heard of. Most notably, it plays DVDs or DVD files (VOB) just fine. It works on PC, Mac, Linux or your phone.
It is much more efficient than iTunes or Windows Media Player. It won't keep track of your music and sync your iPod like iTunes will. You will still need iTunes for that. But if you have a weird file that you can't play with anything else, VLC will fix it.