I'd say, the more picture, the better. Even if those weird anomalies exist on the sides. Granted, all DVDs are authored with about 8 pixels cut off the left and right sides. It was filmed with the foreknowledge that many theaters would playback the film with slight over scan to essentially crop out anything at the very edge of the film strip. Such as dirt, hair, or physically broken pieces of the film strip.

DVDs adhere to a standard that honors that slight over scan. But in the HD age, a 1 to 1 pixel ratio is more sought after. Totally up to you. Cropping out that small amount is actually what the cameraman/ director intended, but it is more picture that people may want to see. So the 1280x554 is a better choice, since I think even the Blu Rays and DVDs show less picture than the GOUT.