1. Open VLC, press "Cmd+," to open the preference.
2. Select the font in Video -> Subtitles/OSD -> Text renderer. Notice that the fonts directory is /Library/Fonts or User/Library/Fonts.
3. Modify the default text encoding in Input / Codecs -> Other codecs -> Subtitles, and uncheck UTF-8 autodetection.
Following are screen shots of VLC 0.8.6e
