So anytime I change from SMSL (headphone) to normal speakers connected to PC do I need to manually change the output device in Foobar?
If you mean these speakers are connected to the PC's sound card then yes, you'd need to change the output device in Foobar. If, on the other hand, you are using speakers connected to the C200 then in that case no you wouldn't need to change any settings in software - just switch the output on the DAC from headphones to line out.
For Windows hardware sound settings, any changes you make here affect "shared mode" audio. Windows sound effects, browser audio etc. should be re-sampled to whatever rate you set here. The behaviour I've found on my setup is that whatever you set it to, something seems to always change it to 44.1 khz eventually. I don't know what or why....
As for VLC, I don't use it in Windows, so I'm not sure. Judging by discussion on the VLC forum I found (searching on things like "VLC WASAPI exclusive mode", it seems others have the same problem.