brash_stryker said:

I will agree with rpvee that it is slightly sudden going from the star destroyer back to Obi Wan's hut. Perhaps a fade is needed to make it clearer that ALL of what we just saw was a flashback.

Also I've just had a thought of a possibly neat way you could transition back, but it would involve changing what you've done with this scene completely

When r2 stars showing the hologram, have the flashback start with everyone rushing around as the blockade runner is about to get docked with (.i.e. the first interior shot of the movies) where we see Threepio and r2 talking. The troopers board and the film carries on as it normally does until we see r2 with princess leia. At this point you transition back - possibly dissolving from the real princess leia to a closeup of the just formed leia hologram. You zoom out from the hologram and it plays as normal.

You of course lose vader talking to leia and seeing the droids escaping a second time, but we already know they escape don't we? :-p

I can't decide which version I would prefer. Guess I'd have to see both.

Excellent idea! But here's a slight twist. Instead of having the transition from Leia to hologram, why not have it the other way? Have the scene in Ben's hut, show the Leia hologram and then transition to her finishing the hologram up with R2. Then the video can go in one of two directions... with the boarding party or Leia's encounter with Vader (but it would lose the boarding party scene). Once the droids escape, it would make a nice transition to Tattooine and Ben's house.