If you have a good internet connection (>=2Mps) then you can stream your media files without even downloading them to your computer first.
Just open using VLC - it will start playing instantly.
If the file is a video/audio file then a link to an autogenerated XSPF playlist is displayed.
Click and open with VLC.
VLC will start playing immediately (if you have a good Internet connection).
If you pause for a while and then click play it won't work. To fix this go to Tools -> Preferences -> Show Settings 'All' -> Input/Codecs -> Access modules -> HTTP(S) -> and tick 'Auto re-connect'. Increasing 'Caching value' may help too if you have a lossy link. VLC needs to be restarted after settings are changed.
Seeking is supported but is not displayed properly by VLC for most of files (.avi). The slider will be always in the start position. To seek just click on the slider bar. We plan to fix it soon.
The feature is well tested. We use it all day as a kind of TV which is always on.
What is VLC?
VLC is an open-source multimedia player. It plays everything!
The media player that fulfills all your needs. It handles DVDs, (S)VCDs, Audio CDs, web streams, TV cards and much more. With VLC, there is no need to continually update many different codec packs.
What about Windows Media Player?
It makes you look gay and stupid. Do not use it. You don't need it.
What about other players?
Most free players are supported. Just try it with few files. We even have plugins for media centers. In fact there's no good reason to use anything else other then VLC or probably SMPlayer on desktop.