Martinidoc and Bookworm - I suspect you're agreeing with each other, just putting it in different ways.
Consider carrying out the procedure as an instrument-rated pilot. The MDH for the straight-in approach is 371 ft. The MDH for the circling manoeuvre is 534 ft. In descening on the IAP intending to circle to land on 07, you would not descend below the 534 ft MDH for circling, despite the lower straight in MDH. There's no question of climbing back up to 534 ft. If you need to descend below 534 ft, you should either be making a straight-in approach, or you should be going around.
The same principle should apply to an IMC-rated pilot. Because the increments are recommendations, I can't use the word must, but if you feel you need a 200 ft buffer for the straight in part of an instrument approach where you can focus entirely on the instruments, it would be very brave to abandon that buffer for the circling manoeuvre where your attention is split between the external environment and the instruments. Most commercial operators would regard this as the most dangerous stage of flight.
Ok - let's take this example and instead of baffling each other with words let's look at it as a logical sequence of events.
IMC holder flies non-precision approach down to IMC minima (600ft QFE or OC(H) +200ft, whichever is the higher). At this point he looks up, sees lights and runway environment and continues visually for the circling approach.
(Let's forget IFR/VFR here, you're just confusing everyone with semantics).
Now, VM(C) is minimum ht. for the manoeuver. All this is is the level below which you must not descend until established on the final approach for the runway required to give safe obstacle clearance in the manoevering area. You are flying
visually at this point, with reference to the altimeter only as a guide to make sure you don't descend below VM(C), the workload is high, but not impossible providing you look out of the window.
So - you fly according to VM(C) (not VM(C) +200ft, as long as VM(C) is
less than the non precision MDH)
providing you fulfill the criteria which is
to remain in sight of the runway environment.
Obviously if VM(C) is greater than Approach minima then that becomes MDH, planning here is the name of the game.
At any point that you lose that visual reference to the runway you
must execute the published missed approach procedure - no ifs, no buts.