It's funny. When I showed my first transfer to Laserman, he commented on how visible the video drop-outs were on my video, and attributed it to my LD player. When we looked at the same transfer from the X0, these were even worse, which meant the drop-outs and such were on the LD transfer, itself . Better players tend to bring out these errors, which means such errors will be even more pronounced on the DVDs.
Of course, had LFL bothered to do even a minimal level of correction, these wouldn't be a problem. In some of our X0 experiments, we've been able to minimize such errors quite easily with freeware. Lucas can say what he wants about using the latest technology, but he's about to be surpassed...and in a big way.
"Why would it appear this way on a DVD, though? Did they actually run it through a projector to put it on DVD?!? LOL"
Pretty much, yeah. Keep in mind, this transfer was made 10 YEARS AGO . It used to be state of the art, which is why it's being put to shame right out of the gate.