Two things.
First, and I didn't see this mentioned elsewhere, the spot on the paper towel is actually on the DVD as well.
Second, what was the final method for repair of this? From my reading it sounds like it was a straight up frame replacement. Isn't there too much of a difference in quality?
Is it full shots being replaced or just single frames? Has anyone considered some sort of rotoscoping/painting-in of the missing bits?