I had my 95 THX Widescreen VHS set (mint condition) transferred to DVD a few months back in a professional studio using some state of the art Sony VHS player (don´t know the model). It really made a huge difference from the video player I have at home, basically excluded almost all audio and video problems I had noticed at home. Those transfers are pretty darn good, especially the sound which is amazing, and I made do with them for a little while, that is until I got a set of the brilliant TR47 transfers. Those are much cleaner looking and much more steady than the VHS ones. Plus there are no audio and video bugs to speak of other then maybe the 4 second pause on ESB. Now I only watch the TR47´s cause going back to VHS quality is not an option for me. There´s a big difference. And as for the 2004 DVD´s - I still haven´t bought them, and don´t plan on doing it. George "lost his marbles" Lucas ain´t getting more money from me - until he releases the unaltered OT on DVD!
This VHS to DVD process is sane alright, but having both and comparing, I´d go for the laserdisc transfers any day. That´s my two cents.