You could possibly make use of the comb filter in the SVHS deck:
connect the composite out from the LD player to the composite in on the deck,
then the s-video out from the deck to the s-video in on the DVD recorder.
Any benefit would depend on whether the SVHS deck's comb filter is any better than the comb filter in the DVD recorder, or whether the LD composite out is a "recombined" output instead of a pure composite.