This is a repost of what i've put in the other PVLC thread, I figured it wouldnt hurt and if I didn't post it here, it'd get lost in such an active thread, Admins, feel free to delete if you find it too redundant.:
AHHHH I've figured out the problem. Well at least it fixed it to me. When I would mouse over the server it would show 192.168.110.11 (or something of the sort). If you're on Linksys and are having the "stuck on connect" problem, try doing this.
1) Go into network settings/connections
2) Right click on the connection you're using
3) Scroll down to "Properties" and click on it
4) Click on "Internet Protocol" (Tcp/IP)
5) Click on the properties button under it
6) Before you make any changes, go to start----> Run...type in command, and than type in Ipconfig /all none of these numbers are important to you but the DNS, write both (or one) of these down).
7) If you have "Obtain IP address automatically" selected, change it to "use the following IP address"
8) Now, instead of the 192.168.110.X that we were talking about, replace it with 192.168.1.X (Sorry for the earlier confusion)
(If you had the IP manually configured, you can skip to number 12 at this point.)
9) Keep the subnet at default (should be 255.255.255.0)
10) The main gateway should be 192.168.1.1 (with linksys)
11) Now for the information you retrieved earlier. Write in one or both of these DNS's and click ok.
12) Check your internet connection and make sure It works with the current configuration and everything was done right.
13) Now last step, go back to your PSP, open up Portable VLC and change your old host IP to the new host IP that you've made. (By Host IP I mean the IP of the computer you want to connect to)
This worked for me, hope it works for the rest of you, give me some feedback and tell me if I'm not clear enough.
If you still have trouble after ALL of this, instead of keeping the port settings on auto in PVLC, go to manual and set the first at 5900 and the second at 5800.