Eureka! We did it and its working!
So the changes to
and
were necessary. As it would not work with user %i.
Then running
Here is the output from ls -l /usr/local/share/hyperion/bin
total 18956
-rwxr-xr-x 1 root staff 3692508 Oct 11 18:24 hyperion-dispmanx
-rwxr-xr-x 1 root staff 3692468 Oct 11 18:24 hyperion-framebuffer
-rwxr-xr-x 1 root staff 3737612 Oct 11 18:24 hyperion-remote
-rwxr-xr-x 1 root staff 3770464 Oct 11 18:24 hyperion-v4l2
-rwxr-xr-x 1 root staff 4509132 Oct 11 18:24 hyperiond
and ls -l /usr/local/bin | grep hyperion
lrwxrwxrwx 1 root staff 39 Oct 11 18:24 hyperion-dispmanx → …/share/hyperion/bin/hyperion-dispmanx
lrwxrwxrwx 1 root staff 42 Oct 11 18:24 hyperion-framebuffer → …/share/hyperion/bin/hyperion-framebuffer
lrwxrwxrwx 1 root staff 37 Oct 11 18:24 hyperion-remote → …/share/hyperion/bin/hyperion-remote
lrwxrwxrwx 1 root staff 35 Oct 11 18:24 hyperion-v4l2 → …/share/hyperion/bin/hyperion-v4l2
lrwxrwxrwx 1 root staff 31 Oct 11 18:24 hyperiond → …/share/hyperion/bin/hyperiond
But i think that this settles it. Many,many many thanks for helping me out with this. After a few months of struggling with broken ambilight and refusing to watch movies without it I can finally go back to it.