Thanks for the addon update Shanemeagher! Running with the ini files now works great. I couldnt get the ini file to be used by default, but when modifying the post-processor command in TVH like shown below it worked fine.
For you other folks trying to get this to work. Install the zip addon as normal, then in Tvheadend, inter the following in the post processor command line in the recordings tab:
If you do some googling and want to use other ini files, just replace the existing ini file, or point to a different location of the ini in the command line above.