I've finished cleaning up reel 3. Not entirely happy with the colors, but did the best I could with it. Incorporated the Swedish segment to replace the portion with broken sprocket holes (with masked-out subtitles). The sudden switch to the very red-shifted Swedish segment is noticeable, but better than the wobbly alternative.
Also finished encoding reel 1. Reviewed the whole thing on my 58" screen... it's certainly grainy and very noisy, as expected. I tested a few different resize algorithms, and given how noisy it is, I couldn't tell the difference between any of them. So I'm just using the one in Vegas for convenience. After reviewing the encoding, I tried another version with a very light sharpening, which improved it quite a lot (didn't think I'd say that!). Now I'm reasonably happy with reel 1. The curved border looks great. Will start encoding reel 2 tonight.
Added more technical details to the website for those who are curious.