Sorry Kenobius Prime if you thought I was having a go at you. What I was trying to say before I got caught up in a rant against the Daily M**l is stories like this should be taken with a grain of salt and it's always best to look at the complete story.
As I say, it's apparent Mel has bad memory's about his time working with Lucas. His comment seems to be a sly dig at Lucas, possibly a joke but more than likely just a story used to explain why he dislikes Lucas.
He tells this to a so called newspaper (who once got Shakira mixed up with Enter Shikari) who publish it. The internet jumps over the story and repeats it because it's the crazy type of thing Lucas would do (go back and alter a movie and insert CG characters). LFL denies this is happening but when it comes to LFL, that means it's not happening until they confirm it's happening so take the denial with a pinch of salt as well.
However, as we know Lucas plans to just re-release the Star Wars movies over and over again, so unless he's planning on remaking all 6 films with dead actors I can't see this happening.
Something occurred to me last night though. Back in the early 90's, when rumours about the prequels was beginning to emerge, I remember reading somewhere that Lucas planned to use images of Alec Guinness from his early movies to create a digital young Kenobi in the prequels. As I say, this was back in the early 90's when Mel Smith would have been working with Lucas on the Radioland Murders so that could be where the story comes from origonaly.
So there's my analysis of this story.
Sorry again Kenobius Prime and thanks for sharing what Mel Smith said.