I think DrDre had experimented with removing halos before. It was successful, but the amount of detail lost was not acceptable. So we opted for more detail, but forced to live with the haloing.

The inherent nature of Dvds simply don't allow a very nice, natural, grain field. The bit rate is far too low. What has been recovered is impressive already. Plus, during the mastering process, they probably screwed up and produced frozen grain chunks. This happens sometimes with poorly mastered Blu Rays as well.

Seeing it in motion is the key factor of course. Grain usually looks worse in static pictures.