This README file isn't corrected/updated as easily as the wiki, so I suggest you look there for How to Compile VLC with Moviesoap.
Just in case something goes wrong, however, it's a good idea to keep these instructions in the README:
###How to compile VLC with Moviesoap
You've got to create a dir [vlc-root]/modules/moviesoap and put these files there.
Then cd to moviesoap/patches and run ./apply_patch.sh. This will modify several files outside the moviesoap directory:
- <vlc-root>/configure.ac
- <vlc-root>/modules/Makefile.am
- <vlc-root>/modules/gui/qt4/Modules.am
- <vlc-root>/modules/gui/qt4/menus.cpp
Then from the vlc-root directory, ./configure and make as you normally would do.
Find more information at http://moviesoap.org