My steps are like this: LD to Digital Video (Digital8 videocamera), then I import the files into the computer directly as MPEG2, via ADS Instant DVD2... It has an excellent Cirrus Logic processor, and the software allows me to tweak spatial and temporal filtering, along with brightness, contrast etc. In the case of Blade Runner, I did my best to clean up the video.
Now, since I import MPEG2 at a 8MBps bitrate, but the the video is still pan-n-scan with black bars, I go to the next step: I produce the final DVD, which is about 8GB in size. I don't think it would fit even on a Dual-Layer disc. So I proceed to the final step, which is re-encoding to DVD5 size, using DVD-RB with CCE at 7 passes, and using the AVS Expert option which converts 4:3 to "true" 16x9... this gets rid of the black bars.
The resulting video is, therefore, slightly "blown-up" to DVD resolution, which results in some bluriness... but I doubt anyone can obtain much better results without using equipment unavailable to amateurs.
I hope this answers your question, dark_jedi.
