I don't think VLC will take the association by itself. If you could right click and choose which program to use, it can be done that way. Otherwise you can open VLC, hit File, Open Directory and go to the Video_TS folder to start the movie.

To edit out entries for AVS, you hit Run, then type in regedit to get to the registry editor. Be careful not to delete anything else but the specific entries for that program, cause registry changes are immediate.