The Aluminum Falcon said:

As for making the Blu-Ray, this grainy... I'm indifferent.

The sample that dark_jedi has uploaded looks stunning, and I eagerly await a release of whatever he decides is the right thing to do! At the end of the day whatever makes him happy is correct, and we are all the richer for him releasing it for everyone. That said, in my opinion there's nothing wrong with film grain. LexX is right when he says film grain is supposed to be there. You're obviously an Evil Dead fan, Aluminum Falcon ;-) Check out the new Blu of ED. TONS of grain, as it was remastered from the original 16mm neg and there seems to be little to no DVNR applied. It may be the grainiest transfer of a film I've ever seen, and it looks outstanding. The grain really enhances the "gritty realism" atmosphere of the film in my opinion, and to me, that's one of the things that REALLY seperates the OT from the prequels. The OT looks gritty and real, and I think that film grain adds to that realism.

EDIT: On second thought, my comments are probably moot anyways. LFL scrubbed the living daylights out of any true "film grain" a long time ago :-( It's probably just the upsampling making flaws in the GOUT master that much more exagerated.