To use CMake:
First, as CMake isn't the default on vlc populate its CMakeLists files:
$ cd vlc && sh ./extras/buildsystem/cmake/scripts/convert_vlc_to_cmake.sh

WARNING: You are strongly encouraged to use cmake-2.5 (cvs version)

Now you can use CMake as usual:
$ cd vlc && mkdir build && cd build && cmake .. (or ccmake .. if you want a graphical view of the settings)
(This will create a build directory)
$ make [VERBOSE=1 if you want more details]
$ make install