http://www.sony.net/SonyInfo/technol.../xvycc_01.html
Quote:
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With 8-bit quantization of luminance and color-difference signals, definition formula are set and the color gamut is expanded by using values between 1 and 15 and between 241 and 254 as picture signals. Definitions over 8 bits are also used to support precise gradation.
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My understanding is that besides using luma and chroma values outside of the TV range you would still set the encoder to TV range for compatibilty with non-xvYCC devices.
This is assuming the encoder does not clip the input levels to TV and encodes the full range. I think x264 handles it this way as long as input and output range are the same.