vlc retry loop when http range requests fail

vlc version 2.0.8. Also reproduced in 2.2.0 dev version. Operating systems: Ubuntu 12.04, Mac OS X 10.9, Windows 7.

We have a corporate http proxy that sometimes interferes with http range requests. When this happens vlc can end up in a retry loop generating ~50k packets per second. Other tools like rhythmbox fail gracefully. I realize this is an edge case.

Reproduce by

1. download an m3u file from the Amazon MP3 store
2. attempt to play it via vlc. The window will come up. Nothing plays (http range requests are failing)
3. close the vlc window.

I will attach vlc debug output.