How many layers are too many?

[WickyWoo]

Yeah, but New Line has always worked closely with Warner for their DVD releases. I see them continuing that relationship with hi-def. I think New Line will let Warner do "their thing" with the audio/video encodes unless approached by Peter Jackson. I'm sure he still has some say as to what gets done with these films.

I wouldn't say that at all

WAMO is no longer owned by Warner, so there is no nepotism reason to involve them

New Line dumped the snapper long before Warner
New Line reguarly featured DTS when Warner (outside of a handful of titles) refuses to use it

Unless it's specified in their contract, PJ has no control. DGA rules require director approval of a film to tape transfer (which BTW I know for a fact that they don't always remember to get), but the LOTR movies were done non-union.