http://www.hometheaterforum.com/htforum/showthread.php?s=&threadid=187458&highlight=laserdiscs
I tried this with a non-anamorphic capture of "Star Trek: The Motion Picture" (laserdisc theatrical cut... different to the official "Directors Cut" DVD) and the results were fairly good. The only things that might make this approach less that optimal are that they use TMPGENC to encode to MPEG-2, whereas as someone pointed out above CCE is generally considered the industry standard for MPEG-2 encoding. Also, the best resize method is, I believe, tri-cubic resizing (someone also mentioned Lanzcos, but I'm unfamiliar with it... worth investigating) but I don't know what method TMPGENC employs, so it may not be the best.
Also, just to add weight to what's been said here already, an anamorphic DVD will obviously NOT increase "true" resolution over it's non-anamorphic counterpart, but it's advantage is solely for those of us with widescreen TV's which generally introduce horrid scanline artifacts when zooming 4:3 material to fill the screen - some widescreens can zoom without artifacts but the vast majority aren't able to do it very well.