I wouldn't recommend extreme caution with Asylum. The guy who runs it is really nice, a great trader all around and I've dealt with him a number of times. He and I just have a different philosophic standpoint on the nature of bootleg DVDs: I find it morally reprehensible to sell them, he does not.
And with regard to the Generations workprint, you have to understand that the vast majority of traders are not people who take the time to capture to a computer, find the right compression settings and author a disc. A lot of the originators of these discs were leftovers from the VHS days, so they dubbed their tapes to DVD in the way that made sense to them, which was a set-top DVD recorder. With one of those, you have to tell it what speed (i.e. compression) to record at. Generations was over two hours, so it was probably set to four hour mode, which records at half-resolution. It's not to be unexpected. In my six or seven years of real trading, I've only ever run into two guys who encoded VHS tapes to their computer, compressed and authored from there. Great traders, those two.