You are mixing the two standard ways used to create bibliographies. When you use
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\bibliographystyle{plain}
\nocite{*}
\bibliography{VC}
LaTeX (BIBTeX) is expecting your bibliographical items to be in a .bib database. But your VC file is something different; it has the form of a manually created bibliography. So, two possibilities:
1) If your bibliography is in the file VC (with extension .tex), use \include{VC} in your main .tex file and suppress the lines
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\bibliographystyle{plain}
\bibliography{VC}
However, you loose the possibility to use all the power of BIBTeX to, for example, easily change the style of your bibliography.
2) Modify your VC file to convert it to a proper .bib file and then use in your main .tex document
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\nocite{*}
\bibliographystyle{plain}
\bibliography{VC}
Now you must process your document in the following way:
(pdf)latex document.tex
bibtex document
(pdf)latex document.tex
(pdf)latex document.tex
Here you can find information about BIBTeX and examples of .bib databases.
Edit: I think this thread belongs to LaTeX->General since it's about a problem not directly related to MiKTeX
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