I finally had time to sit down and listen to these discs. I set up both in their respective players. The HD-DVD in my A35 and the Blu-Ray in my Panasonic BD30. Both are connected to a Denon 4308CI via HDMI. I set both for the Dolby TrueHD soundtrack. I sync'd the playback (within 2 seconds) and let them rip.
First off, picture and sound, they are both the same. I saw no difference in the video quality (which is actually a bit grainy due to the age of the film), and while at first I though the HD-DVD sounded better, upon further switching back and forth, I decided that the sound was about the same.
The only difference between the two is that the HD-DVD has a much better menu system, more refined with more features. For example, pushing the MENU button on the Blu-Ray displays the menu bar, and selecting 3 items from that menu displays more menu levels of things such as audio options, song titles, extras. Pressing MENU again just makes them disappear.
The HD-DVD menus are anitmated in that they "slide up" from the bottom, "slide up" again from the initial menu, and have picture in picture capabilities within them that Blu-Ray cannot presently do. This is a fine example of how HD-DVD is farther along in development that Blu. Of course, the truth is that Blu-Ray will have all of this in "version 2.0", however a new player may be required to do it. I'm not even sure if a newer disc version will be required as well.
That being said, WGAS, as most people just want to watch and listen!
As I said, the HD picture is clearly dated, and the film grain gives a natural feel to it. It's nowhere near the PQ of say the Elton John Blu-Ray disc.
As for the audio, it's great!!
It's a decent surround mix, and the rears are used at times for effects (Whole Lotta Love) but not overdone. Audience is back there, of course, and the opening film has plenty of effects and sounds in the rears.
I am not sure why this was recalled. I read somewhere that there were "objections" to the nude swimming in a stream of the two children during the opening film sequence. If the re-release comes out with this scene deleted, then we'll know that's it. Other than that, I saw or heard nothing wrong. I read somewhere else about drop-outs, but I missed those. However, that could have happened during my switching back and forth from Blu to HD-DVD. The receiver takes about 5 seconds to lock onto the audio when going from one input to another.
All in all, this is a must for LZ fans, a decent buy for surround fans, and a great buy for HD and BD fans. They are not that rare, actually, as many are listed in BOTH formats on eBay for around $30.
Who knows what the reissue will bring?
Because of the surround implications, I'm going to rate this a 6 for surround, 8 for content, and 8 for audio quality, so I'll give it a very neutral 7.