I originally thought Knick Knack was a fullscreen production (thanks, VHS) and the later update was a rework in widescreen. [Wrong about that bit of info] Simply repairing the boobs damage (from the best quality source, laserdisc) on the later widescreen version made it a boobs restoration (hence this project's title).
I also thought the next immediate project would be a preservation of that best quality fullscreen laserdisc. [Again, wrong about that info]
A later project might be an update-remake -- basically the preservation in widescreen. [Wrong info again] That would be tougher to do because the update required reprocessing the entire film (because of the new, boob-less animation models) on different equipment with different software (which took Pixar months to sort out). Side effect? It altered (however small) things like camera and character placement. Also I noticed the leaves/hair of Sunny Jamaica look as if they were rotated to clump differently (see pictures below). That would be a much bigger project.
And the last, topper, project? Why ... a 3D (or more accurately stereographics) reconstruction ... of course. With every object already independently layered for the previous project, this is would an easy final step. Except for snow flakes in the snow dome.
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So, scratch the old, wrong info and let's add one more thing to this project. Color correction. The laserdisc source has boobs and original color (and should match the freeze-frame snapshots from Toy Story 2). The updated, superior resolution HD source for Knick Knack then must be color-corrected to match, before the boobs restoration onto it.
In lieu of a laserdisc snapshot , the picture below is trimmed out from the Toy Story 2 in-story TV screen ..
It is geometrically distorted (like an old glass-tube TV set), contrast reduced, and color de-saturated (from the rest of the shot). To clarify it back into a real picture, it's luminance is spread back out (Low, & High) across the spectrum, strengthen by lightness (Gamma) and contrast (Midtones). I normally use RGB adjustments, but haven't figured out saturation yet. So, another tool was used to increase the color strength (Saturation). All values changed from their defaults are high-lighted as shown ..
Wow (on the left), that looks nice! It makes the update picture beside it (resized & TV-cropped to match, from the Finding Nemo extras) look dark, dingy, and just plain wrong. Note it's commentary subtitles, and no boobs ..
As you can see in the R-G-B adjustments, the
compressed highs were pulled back up
(High), the contrasts increased (Midtones),
and the lightnesses increased (Gamma).
In that process, the over-riding green tint
was less increased to let the normal color
come out. The red graph-overlays show
resulting spectrums ..
And the resulting color-corrected picture? Astounding! Well, almost astounding. Just two things missing ... and we'll take care of that, too. 
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I hope you liked this demonstration. And in keeping with this project's subject matter, I presented it as ... well ... boobs.
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Now this Knick Knack is original widescreen, original color, and original boobs ready!
for user freedom, more small steps (forward) 
for comrade YouTube.
And if you act within the next 10 minutes, we'll throw in a 2nd one ... absolutely free! Just pay shipping and handling!
