THANK YOU, Eric and Markus! At last, success.
I was doing several things wrong (obviously): I had not done a "make," or a "sudo make install." Once I did that, I was still not seeing the new options for the TS format... then I realized that there were multiple versions of the tvheadend binary on my system (not sure how that happened, as this was on a fresh install of XBMCbuntu / XBMCfreak, although it dawns on me that it may have come with tvheadend pre-installed). But I could tell there was a good EricV binary and an old "stock" binary on my system, because when I stopped the service and then specified the EricV binary, I would see the new options, until I rebooted, and then I would go back to stock again.
In any case, also following the directions from here:
https://www.lonelycoder.com/redmine/boards/5/topics/4433
(That is, doing a "sudo nano /etc/init.d/tvheadend" and changing "usr/bin/" to "usr/local/bin")
Everything started working!
Thank you again for all of your kind assistance. I realize that those of us in the "know enough to be dangerous" category with Linux can probably be pretty annoying, so I really appreciate the patience and troubleshooting!
Cheers!
Jaime