I'll do rough cut editing on Episode III in standard def (using something like lagarith this time rather than MPEG- that was a huge time consuming mistake I made on SOTDS), but when the movie is cut I want to try and plug in the HD version instead. I want to do Ep. III in HD- that way after all of the recropping and recoloring and everything it will still be at a high quality for standard anamorphic DVD.
I'll keep Ep. III in stereo because I don't have an adequate surround setup and stereo gives me much more freedom to make major changes.