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I'm wondering the same thing as you: How to make Laserdisc and VHS edits without going to DV. Do the Laserdisc preservations (Star Wars, Blade Runner, etc.) sidestep this by capturing directly to the MPEG2 using an external hardware card, so no editing/recompression is neccessary? I noticed OCPMovie's "Classic Editions" (AMAZING as they were) had serious antialiasing issues. Is that a side-effect of editing in DV? I'd love to see comparisons of MPEG2s made from DV captures and MPEG2s encoded on-the-fly by a breakout card.
One more question: If the source is DVD (as in OCPMovie's case) why not edit the exact MPEG2s ripped from the disc? You'd need to recompress when you output, but you need to do that anyway to fit on a 4.3GB disc.