Actually, the GOP editors preserve the original MPEG encoding as long as you don't manipulate the image beyond cutting it. If you apply any changes to a frame or a group of frames, then only those frames gets reconverted, but the untouched segments still retain their original quality. It's the biggest reason I went that route. The actual original data doesn't get mucked around with. If the software could do the same treatment to the AC3 files (when you're fading or crossfading, because straight cuts in audio also result in no recompression) then it would be that much better. I'd love to do an analysis of just how much audio degradation happens when we demux to wav, edit, then recompress to AC3.

That said, DE's disc just looks so damn good -- even in single layer format -- that any recompression drawbacks are pretty much unnoticable. I assume they're there, but nothing grabbed my attention so much as junk mattes and jump cuts do. What he's done really is the dog's bollocks. I'd love to see a DL version.