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VLC is not good, because it does not handle soft-subs well, which is increasingly becoming popular and it's not very stable when playing MKV files (which happen occasionally when seeking though the video.)
For Windows, just use CCCP and Media Player Classic Cinema since it should handle it without problems.
For me, on Mac OS X Leopard, I use Quicktime Pro + Perian and MPlayerOSX Extended (which is highly recommended). I use Quicktime since the interface is simple and I can convert my subtitled anime to iPod, iPhone and even Playstation 3 (If you have Pro registered). MPlayerOSX Extended, however is my recommended player for the Mac over VLC since it supports most media formats, supports soft title subs with full effects and also have smaller footprint compared to VLC (VLC for Mac OS X is over 50MB which is ridiculous).
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