I can only speak to the titles I own, but I have music videos that smear pretty badly on the 704. I archived them with my PR-8210, as most were analog sound anyway. In a movie like THX, I could see some smear around Pedro Colley's head in the white void sequence. I have read elsewhere even with all the DNR turned off, the 704 still applies some processing to the video.

msycamore, I'm pretty sure I transferred the pan and scan disc with the 8210. If you can hear audible buzzing on the soundtrack, that's what it sounds like with CX turned off. The disc didn't have CX encoding.

It wouldn't surprise me if someone slathered VNR all over the video master while censoring it for the Japanese release. Keep in mind it's a much older film transfer, even the telecine could be the culprit.