Someone released a restoration of Suspiria recently - have a look here:
http://drsapirstein.blogspot.co.uk/2012/12/suspiria-restored-preserved-hd-edition.html

Unfortunately, a good portion of the above release is upconverted then heavily filtered from the old Anchor Bay DVD in order to have completely accurate colors. I commend the effort, but the end result is not alltogether enjoyable. Speaking of which, the original Anchor Bay DVD seems to be the best source to reference colors AFAIK.

The DVD with lossless PCM is I believe Matt Steven's version. He's recently been active around the forums, so, dark_jedi, you can ask him yourself whether his audio is BitPerfect or captured. Honestly, I'd be interested to know; never got a chance to ask myself.

The best BD sources for Suspiria, video-wise, are the French BD and the Japanesse BD. For the first two thirds, the French BD has the best video quality, color-wise, being the only transfer not to be overtly pink; unfortunately, the contrast seems slightly hotter than the Japaneese BD, whose main issue is being 29.97 (but it IVTCs easily). The Japaneese BD is the best for the final scenes: when (mild spoilers, I guess) witnessing the coven talking about Susy and meeting Helena Markos.

Anyway, hope this information helps. I love these movies. Would really want to see a project come to fruition.

Unfortunately, that Suspiria BD is the UK version, which has heavily blown out contrast though, by all accounts, good to excellent audio (a remix coming close to matching the LD). I may want to mention tha both the Japaneese and French BDs don't have remarkable audio (mono for the French!).

Here's a comparison of all the different BDs:https://sites.google.com/site/suspiria1977bluraycomparison/

(Kudos and Credits to whoever actually made it).

Sound wise, my DVD of SUSPIRIA will murder each and every release of this film. Period. Hands down. We'll take the Pepsi challenge any damn day of the week. :)

My partner on that one would remember how we captured the audio. It is from the laserdisc but I do not recall how we recorded it. 

The DVD's do not have very good sound. The laserdisc's PCM stereo played back via Pro Logic II can't be beat. 

That being said, the 5.1 mix on (I think) the British release is close. It is not the Anchor Bay remix. But unfortunately it has a terribly screwed up transfer. The French BD is better.

I've emailed my restoration partner and asked him the status on his BD restoration. He is working on one and I guarantee you, no one will do a better job. No one on this planet. 

I heard the UK BD has decent audio, but is missing a line (or, indeed, a single word) from around where the side change was on the laserdisc, so probably came from that source (unless, of course, both just happened to occur at the same reel change).

For the best video, you'd probably do well to pick and choose your scenes from various releases. There's also the Australian release to consider, which may or may not have some unique characteristics. There's a discussion about that one here:

http://forum.blu-ray.com/showthread.php?t=202998

Koch gets my vote for best PQ for Inferno, though some prefer the tweaked colours (from the same master) of the US release. Not sure how the Blu Undies 7.1 and Arrow 5.1 remixes stands up to Koch's original 2.0.

Mother of Tears? Nyeah...

The R1 Anchor Bay/Blu Underground DVDs are generally considered to be of reference quality, colorwise.

I enjoyed MOTHER OF TEARS for what it was, and even caught it at its world premiere with Dario and Asia in attendance, but would hesitate to even include it in the same sentence as the other two. Good luck with the project, DJ.

For me the French release looks sensational, other than the scene that are screwed up for some reason. It's strange that the French release has fewer PQ errors vs. the British release, despite their being from the same master.

See the comparison link I posted above. The Italian release isn't the best IIRC, with heavy DVNR. The French and Japaneese are far more worthwhile.

You can't really 'rip' a laserdisc. You can just capture the sound, either via the L/R analog outs or, if you have the equipment, the Optical output. Trust me when I tell you, no one is going to be able to tell the difference. Either way the sound is pure gold.