skyjedi2005 said:

Also here is an article with info on the original color that they wanted while making it. Described as monochrome like.

http://www.nytimes.com/1977/11/27/books/tolkien-hobbitani.html

If that is the case then the bright disney like color job on the DVD is wrong.

Re-read the paragraph, that's not what it says:

"I like monochromatic works," said Rankin, "and I saw the whole picture in a series of monochromatic designs. There are about a dozen major sequences and each has its key color. The Hobbit Hole is springtime greens; the Gollum's cave, purples; the goblins' place, red; Smaug's cave, golden...

I listened quickly to the "Hi Fi Hobbit", it's not very hi fi ;)

Poor vhs quality lacking in dynamic range and rather muddy sounding.