Not to be a complete distraction, but what would be the point? Have you forgotten that the gout is both SD and DVNRed? By taking that, putting it to 16mm and retelecining it, all you will get is more artifacts. What would be the point, anyway? There are several real 16mm transfers of star wars that are true film to film transfers. Won't they always look better?

Oh, and for the record, if you transfer a SD source to film, it will always be SD. Scanning such film to higher resolutions, like traditional upscaling, will not magically make the footage HD. If it did, the BBC could make blurays of Doctor Who kinoscopes.