Commercial skip works perfectly while viewing the recording in mythtv. My wife use this interface daily, and I would definitely have heard about it if commflag, and commercial skipping were not working
You do have to go into mythtv's etup menu (from within mythtv interface) and activate commercial skip, but after that, it does stick through concurrent reboots. In fact I used this feature last evening. And it still does a bang up job
Hope that helps.
And while LMCE is not a "drop in" replacement for vista (bleck, can't believe I typed that word
) I tis a fully functional media center, it just adds home control and a vast ocean of other goodies. You can't beat it with anything else IMHO.
I hope you give it a try. Your hardware looks as though it should work fine. Not sure why you are having issues. I really hope you get it working.