Easily you could do that - when I had it for a while, I made some improvements just by using a simple B/W filter in Sony Vegas (my preferred video/audio editor) and adjusting the contrast to make it look more like the first movie. His suffered from what I call the soft greyscale effect where everything just looks grey and unappealing. Add to that it had a green tint and that cheap old movie filter (which I was going to mention but forgot to write - thanks ThrowgnCpr!) and it was just unappealing to watch.
If you want to start by just editing an AVI or MPEG file (just to get your chopping skills down) I'd suggest that, especially since ripping the files as a workable DVD file and editing those is a bit slower work and rendering a new AVI or MPEG file is much quicker / easier. Plus, it would be easier to download so we can tell you what you need to work on. But that's just me, I don't know if ADM and others would appreciate a lower res version, but I'd have no real prob with that from a first time editer, especially if doing it that way would allow you practice and flexibility. Plus, this is hard work sometimes, who wants to learn all those skills if you find out that this isn't something you like doing?!
I do this for fun occasionally - I still have a Star Wars Holiday Special Edit that needs to be rendered, and it's been done (mostly) for over a year, so you can see the level of commitment I have to this kind of work lol!
If you do decide to do this, I'll help out anyway I can in form of suggestion of what I'd cut and how I'd do it (cuz I do have some ideas too)
@ ThrowgnCpr - I thought he only released an AVI or MPEG of that, not a full DVD, or am I mistaken?