When you connect a remote computer using SSH, and start a media file with VLC, audio plays at remote host and video (if exists, converted to ASCII) is transferred over SSH to local client, which is kinda cool, I think. If you want to start VLC with GUI on remote, the DISPLAY environment variable should be set correctly.
Now when you run
vlc command, it starts with GUI mode on remote computer. Moreover, if you want to launch it in full-screen mode, you may set
vlc -f mediafile