Sounds good! Lets do this. Audio will be collected from the LDs for sure.
The cinema DTS could be included, i would like that.
Regarding the colors i purpose making them more like "the LD". Since the US Version differs from the PAL release regarding color (desaturated vs. oversaturted) i think we take the best of both worlds. The HD DVD pushes the color a bit against yellow/teal.
So tried making them look a bit more like the LD, its a subtle change - but its a change:
HD DVD (color like LD):
http://www.imagebam.com/gallery/dulljet6s89ktw8scphjvns2ecsd3mqh/
HD DVD (original colors):
http://www.imagebam.com/gallery/cej394q2zy5qh51wkp3jlwxc7gdt53mi/
What i found is that there is no detail in the HD DVD master above roughly 1024x576px. So i think if we go 720p (1280x720) this should be enough to capture all the details present in the "HD" master. There is absolutly NO visible difference between 720p and 1080p in this case, so i think 720p will be fine.
Again: if there a some might like to have an unaltered LD preservation including the LD-picture, this could be done additionally as a "side-project".