This new and longer 720p clip really shows off the quality and resolution of the cleanup. You definitely pumped up the de-graining alot and it might be a good idea to pulled back ever so slightly. Some of the faces look a little bit like this at times:
http://www.dvdtalk.com/reviews/images/reviews/1/full/1278011824_1.jpg
I absolutely agree with your belief that the de-graining helps. Honestly, I'm surprised that I wasn't as upset about it. It really looks amazing. Maybe pull back just 5%. Could you give us some screen grab samples for steps in reducing the amount of DNR?
You can really see the over-smoothing of the image when Luke is sitting and eating with this Aunt and Uncle. It's especially noticeable in Uncle Owen's face.