To run experiments you need first to patch vlc to add the max loss rate check
functionality (which just writes a message on stdout when the target max loss
rate is exceeded).
To this purpose, get vlc sources (check in this directory which patches are
currently available), then cd to the vlc sources root dir and invoke

patch -p1 < PATH_TO_THE_PATCH/vlc-your_version-limit-loss-rate.patch

After properly compiling vlc, you have to set a few parameters in conf.sh,
explained below, and finally just invoke vlc_test.sh as superuser.

The parameters to set in conf.sh are:
. where the vlc executable containing the patch is located
. the user you want to be for executing the main tasks that do not need
  superuser privileges
. the address of the system running the vlc server and the user@address to use
  when launching the (fake) clients
. the list of movies to play (the paths to the files)

There are a few other configuration parameters that you might want
to change. Probably it is better to first familiarize with the set of
scripts. To this purpose you may start by invoking
vlc_test.sh -h
to get an idea of the usage, and then browse the script vlc_test.sh itself to
understand what it does exactly and how the other programs help it.

POSSIBLE PROBLEMS

One of the reasons why the scripts may fail is that your version of nc has
a different syntax/semantic w.r.t. to the expected one.