I promised some VLC devs to try and to YUV to RGB conversion via shaders. Then I hit a wall, MingW does not have the headers to load and compile HLSL from text. There have been attempts by wine and reactos at rewriting the headers, but none that I could use.
So it seems like I will have to take the long route, compile a utility DLL to compile the shader and pass a handle to it back to VLC.
PS: I ended up answering my own question on SO about this.