I decided to take the plunge and rearrange my equipment to test the TVGuardian setup, here are my results. Sadly I was not able to get the word filtering power of TVGuardian to work with my LinuxMCE system. The video player does not output its CC (closed caption) in a standard format. When captions are displayed they are put over the existing image of the move before the signal is ever sent from the machine, as result the TVGuardian is not able to see and filter out any language.
Solutions: (Hypothetical, not tested)
1. Have an option that sends the CC signal as a standard signal so that other devices could use this information.
2. Make a program that does the work of TVGuardian before it ever leaves the system. I don't think that this should be too hard because it should only have to monitor the words and replace key words or phrases with another word. (I know nothing about programing, so this could be more difficult than I think)
If anyone can think of something that may work, post it so that I can try it out.