Well as I mentioned before, grain is not retained by DVD to begin with. Take the vader and leia image we've been looking at as an example. On Leia's top there's quite a bit of grain, but over on Vader and the ceiling lights and the walls there isn't. DVD simply can't retain it, it's just not possible for MPEG2 video to do it. In any image you will only ever have the grain of the source partially represented. And remember the way that telecines scan mean that what you get is not necessarily a true representation of the finer grain structure on the film.

But there's nothing wrong with grain, it's the noise that's been introduced with your system that I dislike - all that haloing. And that isn't in the source, it's introduced. Vader's chest plate in your version looks great, if not for all that extra noise that comes with it.