The syncing and editing in FCP is now complete and I have burned a test disc which plays great. I am now tackling the issue of trying to fix the crystal clear yet butchered color and gamma of the official dvd footage. Using my preferences and taking some nice cues from starwarslegacy.com, I think it will be much better. Here's a screenshot that shows my first couple of scenes of fixed color and gamma balance.
Once the color correction is done, then it's authoring time. Hopefully this disc will be "released" by May or so. I welcome any comments...