Hello, and thanks for your kind words. And most humbled that you had used my methods.
The larger the viewing device, the more obvious errors and noise are. And the more compressed a format is, the more likely it will have noise and errors. VHS was a noisy consumer analog tape format, for example. And then MPEG-2 can be a very lossy format, depending on quite a few variables, including source and encoding method. While VHS captured directly to MPEG-2 (on the ATI AIW cards) looked fine on SDTVs of the era, and even HDTVs up to 60" (with playback filters), I'd be lying if I said the picture would be excellent at 80-100". I'd honestly have this workflow, for that source:
1. Capture to lossless
Huffyuv AVI.
2. Carefully filter the video with Avisynth and/or
VirtualDub, to remove encoding-resistant noise and errors.
3. Encode to H.264 MPEG-4 with a very decent bitrate. Or high bitrate MPEG-2 (15-25Mbps).
That would yield an awesome image.
But that would also result in a Blu-ray or streamed-only version.
For a "DVD version", simply encode a normal bitrate MPEG-2 as an alternate Step 3. Do both -- one "the best", one for DVD-Video format.
If you have more questions, just ask.
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Note: Sorry for the slow reply to this question -- tech questions asked through PMs and emails are answered much slow than posts.
Always ask here on this forum, in posts, for the quickest replies.