To view an H.264 stream in VLC, Open VLC, select Media | Open Network Stream. On the Network tab, enter 'rtsp://[camera-IP-address] and press Play.
If no image after a few seconds, please try the following:
From the VLC menu, select Tools | Preferences. In Preferences, look in the lower left hand corner and select "All" for Show Settings. Then in the Input/Codecs | Demuxers | RTP/RTSP section, put a checkmark in "Use RTP over RTSP (TCP) and select Save.
Try connecting to the camera again.