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The list of issues with the GOUT is long. It is a very flawed release, though it was not unheard of in DVD release history, it was about 10 years after other such titles that I have in my collection. It is pretty pathetic to try and watch it on a widescreen TV. It would have been nice if they had just used the same interpositives to make a new widescreen transfer, but they were lazy and used a slightly modified version of the 1993 Definitive Edition LD master tapes (replacing the ANH Episode IV title sequence with the original 1977 title sequence and leaving the 1993 audio). There is too much noise reduction and it is badly done (though from other releases where they didn’t use it there are issues and the choice becomes understandable in the old world of CRTs). They are just flawed, but they are still a better video source than most LD’s (the master tapes would be the full 480 lines where the LD is 400 lines of resolution)
The GOUT can be enhanced to look better, but not much better. It is probably best suited to sourcing a widescreen DVD, though from what I’ve seen, there is some benefit to scaling it up to 720p depending on what effects are used. It is better than LD, but still far below DVD standard.