DoctorM do you know if the Hercules DVDs you mention are transfers of a film print/negative?
I found the Gold Colection pocahontas DVD which is the version I will be watching because it has film grain, and I love grain even in CAPS animation.
It gives life to the film (compared to the flat digital look) and also ties all elements (hand-drawn and CGI) together.
I’m afraid I don’t know about Hercules.
A good source to check for details on different versions is DVDizzy (formerly UltimateDisney.com): http://www.dvdizzy.com/disneyanimatedclassics.html