According to the version notes on the Fantasia Legacy DVD, the 1968 re-issue simply spliced out the offending shots! The 1982 version (with a new soundtrack recording) also cut out the portions, but the soundtrack was properly mixed to keep jumps from happening. The 1991 restoration (of the 1947 theatrical cut) zoomed in and cropped. The 2000 Roadshow version DVD again zooms and digitally removes characters (one shot only... the rest are awful quality zooms).
It's funny since the version notes have NO mention of the 2000 DVD being censored!