It is working great with VLC 0.8.5. You can record both HD and SD programs that you playback on the STB. I have experimented a bit with the Live signal and you can get some frames for at most a second or two and then it breaks up and freeze when you stream direct to screen. It will not create a file if you stream the live signal to file. It will require much more investigation to understand the issues involved (e.g. "5C" code) with Live.
CapDVHS fails everytime.
The quality with VLC is much better than going via a tuner card and a HTPC application like BeyondTV so it is much more useful for video editing and saving. The problem with VLC is that there is no timer to tell it when to stop recording so you need to setup some DOS batch files to set that up. I saw some comment in the SageTV forums (sorry no link) on how to automate with the guide data. I will try to setup something simpler so I can tell it to stream to file (i.e. record) for 90 or 120 minutes.