I'm trying to run VLC (2.1, 64 bit) without any chrome on Windows 7.

You can achieve it by going to Preferences, and in the Interface tab, unchecking Integrate video in interface, and also in the Video tab, unchecking Window decorations.

The problem lies in the fact that without Window decorations there is no apparent way to move or resize the video window - in GOM player, for example, you can move window by dragging on the video itself; is there an option for this in VLC?

Ideally, I would like to move the window by the method described above (by dragging the video), and would like the Window decorations to reappear on mouseover, to allow resizing; I'm a new VLC user, but unsure how far the customisation goes. - I'd settle with just the moving of the window via dragging the video if this is possible by advanced setting.

There is a similar question here, but not exactly, and no solution to that particular question.