I've heard the PAL THX versions don't have smearing. I wonder what this shot looked like for those. The other thing is the THX versions have much reduced color and contrast to hide the video noise. The orange blur is much more noticeable pre THX.
Are you trying to erase the ghosting from the DC or remove the scratches from the SC? With the "Gout" dvd's, It's become a lot easier to see the ghosting. It's in a LOT of scenes. I'm now starting to wonder if the SC shots will be needed for at least half the shots.
Personally, I think the orange blur has to stay intact in it's full "glory" but I can't wait to see it with a pristine background.