The error was "Cannot create play command." After doing some searching this is a bug when the play mode is not set from the menu. You need to set it to either http (audio) or rtsp (video). I also had to open up another port in my windows firewall as VLC S&C had notified me it couldn't open that port. After that it worked! AS far as I can tell this is the only method that will allow you to stream movies from your PC to your Xoom. I hope they port XBMC to honeycomb soon!