I don't know about the LVW 5101 but on my 5005, the coaxial IN and OUT are just a passthrough, without any video modulation such as a VCR (eg no channel 3 or 4 output). In this respect, the LiteON is different from the VCR (the ILO and Panasonic recorders I have experience in using are also pass throughs).
I think the only output to TV on these recorders is by the RCA and/or sVHS output to the video IN of the TV. There is only one tuner in the 5005 and as such, I could only watch the program that it is recording if I am watching the Video IN of the TV. I could of course watch other channels on the TV that is not on the Video IN by using the TV's tuner.
The Timer function works on my 5005, but I have to turn off the 5005 in order for it to work (as on some VCRs).
If you really want to, I suppose you can buy a video modulator to turn that RCA/sVHS out into a Channel 3 or 4 on the coaxial input to your TV.