I would try and get a DE set that is in good order, the video noise floor is considerablt lower than the faces set.
After some quick experimenting, I am feeling a little more confident about making a de-specialised edition. We got another LD player in today, a sony MDP, and the quality via its RGB output is stunning, I've never seen the laserdisc image look so good - ever so slightly softer, but MUCH more detail evident, so a mild sharpen brings it much closer to the DVD release.
I tried running the DVD out via analogue into the same capture system we are using, and then you end up with something that would be able to be mixed with the laserdisc footage without jarring the viewer too badly.
Basically I am now thinking I will recapture the LD version again from the sony, get a hold of a US OT DVD release (any one got one spare and capture it into the system via RGB analogue.
I intend to keep the soundtrack from the LD release, I like the new sound on the DVD, but it is far too different score wise.
Then I'll go through the LD version and replace the video with the video from the DVD where applicable and match the sources as closely as possible. The star wars 'wipes' actually make this process work really well, the wipe distracts the viewers eye, so you don't have a hard cut from new to old footage - it makes the transition a whole lot less obvious.
For some scenes we are going to try painting out the offending CG (Most of my work is in scene reconstruction and digital rig removal...its what I do)
i know it sounds nuts, but after a few tests, I am feelign a lot more confident that I can produce a really good looking OT that I can enjoy watching on my big screen, without getting annoyed by the new bits. It may mean some slight enhancements get left in, but that everything I hate about the re-release will be gone.
Now all I gotta do is get me a region 1 release disc...