They are all upscaled using Avisynth to 720p, and the main audio will be h_h's 5.1 in DTS-HD MA 5.1, but his DD 5.1 will also be on there, ALL audio on the V3 DVD's will be on the Blu with 1 exception, you will have the option to listen to the DD file or the LPCM file, and I may, and I said may, put the Wonderful Imperial Edition Score by ABC on the ESB BD25.
Edit - I just read your second question, no probably not, I really do not think that the video will improve much by this, all I wanted to do is have it better than the V3, and that is what I accomplished, the main thing to this release is that I can have ALL audio that I have been working on in this release.
OH, and I am not making NO AVCHD's, why limit yourself to a stinkin SL or DL DVD? it is time to move on and step it up to BD.