OK - off the phone with City Lights. The person I spoke to agreed that they had also been a bit disappointed when they viewed it. This person also told me that City Lights had received alot of good feedback and that the people who did the transfer believed the artifacts that we see to be good for the film (I don't agree).
So, I suppose, bottom line - if you love the film - it is worth having on digital media (maybe the SD DVD will be cheaper - and upconverted will do) - otherwise just rent it to see what all the uproar is about (and WILL BE as people start receiving their copies)
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