Just realized it may not be clear that the point of listing the before and after right click menu was that adding VLC and the default Open With seems to have made Nautilus think there is no default for purposes of the right click menu.
In addition, this sounds like a Nautilus bug rather than an Ubuntu bug. It may also be that some other configuration might be needed for Nautilus though I should not think it necessary.
Lastly, it occurs to me that the files on the go-open DVD seem to contain a stream of multiple data types and if that is causing the issues, the problem is more with the production company than. Meaning I am just very unsure where and how to report it. I looked at the ubuntu bug list (over 16,000 items) and did a couple of searches but did not really find much.