DE, while your statement is not incorrect, it ignores the fact that the LFL DVDs will be made from the same composite master as the LDs themselves, so it doesn't make much of a difference in this case. It's true that both versions will have their issues. LDs, being analog, are hard to reproduce with the maximum possible quality and far more often than not the step will be lossy, while the DVD can be reproduced accurately with ease but will have compression effects that can't be improved on regardless of player. However, I trust that the very reason the X0 Project exists is to address the former issue, which is why LDs will probably have the edge in this case(ignoring resolution).

Digital captures. Pure PCM.

Hopefully not with an Audigy card though.