[Ed76]

@crawfish
the whole thing is a little confusing right now, let me explain:
you can choose between 2 options (if your tv needs limited color room (most tvs need this)):

1) output rgb limited + (disable limited color room within kodi) and all is fine. this will give you a good picture quality.

if you want a better picture quality than 1) you have to set:

2) output full rgb (driver) + enable limited color room within kodi. thats a little problematic right now but i think i can help you:

up to kodi 16 beta 4 afedchin used the "old method" of changing color room from full to limited. with that method kodi tries to "tell" your gpu driver to use limited color room. that worked good under dx9 (kodi15) but with dx11 (kodi16) it did not work on some gpus (e.g. ati/amd) because of driver problems. for these gpus the result was kodi sets your gui correct to limited color room but not for videos (video remains full color room).

the "new method" should work independently of drivers. with the new method the operation from full to limited color room is done within shaders. but this is not working as it should work. gui has correct limited color room but not video. if you enable limited color room within kodi also the video gets brighter (what is right) but within that flashing lights testvideo you can not see any flashing light <17 (also if i set the brightness of tv to 100%). i guess there is a little failure with color conversion, means there is a change in brightnes and/or contrast, but the result is not the right one.

i have done the following to solve the problem (at least for ati/amd):
download kodi 16 beta 4 and extract it (e.g. 7zip). search for folder "shaders". copy the lanzcos3/spline36 upscaling shader to your installed kodi 16 shader-folder and overwrite file. make sure to set upscaling method within kodi to lanzcos3/spline. within your driver settings set full rgb output and force limited color room for videos only (that is possible for ati/amd, not sure if it works for nvidia). now the color room is correct for kodi gui + kodi video + all other video players (also which have no option to set color room like html5-netflix-player). (with these settings and upscaling shaders you should have the best possible picture with "normal" kodi / no-dsplayer-kodi)

hope this helps you or others...