After I started my journey with squashfs I encountered problem with VideoLAN as I couldn’t start it.
$ vlc VLC media player 2.0.1 Twoflower (revision 2.0.1-0-gf432547) [0x23b9108] main libvlc error: No plugins found! Check your VLC installation.
More verbose output:
$ vlc -v VLC media player 2.0.1 Twoflower (revision 2.0.1-0-gf432547) [0x1b8c108] main libvlc warning: cannot read /livefs.squashfs/usr/lib/vlc/plugins/plugins.dat (No such file or directory) [0x1b8c108] main libvlc error: No plugins found! Check your VLC installation.
As seen above it just searched for plugins in non-existent place.
Create a symbolic link so VideoLAN would see plugins:
$ sudo ln -s / /livefs.squashfs
Use environmental variable so VideoLAN would use correct path:
$ export VLC_PLUGIN_PATH=/usr/lib/vlc/plugins/
I found these solutions while reading Linux Mint Forums and the videolan forums.