TVheadend only reproduces HD channels

So, i’m not exactly sure what you’re asking, but what i can say is that i followed your instructions on how to install TVheadend, including the dvb_hdhomerun “wrapper” for OSMC (which uses a linux kernel), so i think the proper answer to your question is “yes”. However, i’m a little confused by the DLNA question… are you saying that the HDHR box might see the RPi2+OSMC as a DLNA client?

I have not taken any extra steps to enable/install the pvr addon (would i download that from the app store?). That is, unless your instructions included installing the pvr addon and i didn’t realize it. The instructions i’m referring to are in the thread located at OSMC RC Unable to install TVHEADEND

The HDHR EXTEND has hardware transcoding. That tells me that if the signal coming from the broadcaster uses one type of compression, and the device requesting the stream wants another, the HDHR will transcode (decompress using one codec and [re]compress using a different codec). So, it depends on what TVheadend is “requesting”, correct?

I’m in the US and am hooked to a us-cable-irc feed (at least that’s what the HDHR is reporting when i use the hdhomerun_config tool on the command line). My 16:9 channels look like they are 4:3 and the older programs that are broadcast in 4:3 look like 3:4, that is, taller than they are wide. So something is getting translated incorrectly.

Also, i did receive the VC-1 license and tried it out. There is absolutely no change in the picture; neither the aspect ratio nor the resolution. So there’s something else going on here… just don’t know what.