RU.08 said:

Harmy's trilogy and Adywan's Ep1 are reconstructions of an approximation to the theatrical cut. They still contain considerable differences (especially the OT films). Branching from Ep1 Theatrical to the DVD version is possible, as there are less differences than in the OT where virtually all opticals were re-done for the 1997 SE.

I can give you an Avisynth script that enhances Althor's LD rip without losing the unique characteristics of the source (contrast, colour, etc). It's watchable and only slightly below DVD quality.

There will also be, at some point, DrDre's SuperResolution scripts. Either way, I definitely see the value of using actual OOT source if compiling BluRays with a goal of representing every real release of the film accurately. But I don't think that's the goal here (despite the fact that it's inching in that direction). In my opinion, though, Dre's script and maybe a little extra editing may result in something of good enough quality for a set like this.

As for episode 1, it seems to me that the best thing for him to do would be to wait for your reconstruction, and then he can cleanly branch from that/schorman04/2011, right?