Hi Sander,
wavelets should be run against unstretched
Yes, but this refers to wavelets applied as an *image restoration* process, i.e., ATrousWaveletTransform applying layer biases. In this case, wavelets act in a way comparable to deconvolution.
However, the HDR Wavelet Transform algorithm usually doesn't work well with linear data. Of course you already know this example:
http://pixinsight.com/examples/wavelets/NGC7000/en.htmlNote that I applied HDRWT to the stretched image. In general, HDRWT should be applied with its "Luminance mask" option enabled. This option protects the background and avoids ringing artifacts.
If you upload the image you're trying to apply HDRWT to, I can give it a try if you want.