Regardless of your opinion about Star Wars Episode 1, The Phantom Menace , one thing thing about the film is without debate: the picture quality of the EP1 DVD is absolutely awful. The disk is chock full of everything you can do wrong with production of a DVD. Edge enhancement is apparent everywhere, giving spaceships false ghostly halos, and making the sandy terrain of Tattoine and the lush grasses of Naboo a garbled mess. Bright colors are overdriven, causing nasty "mosquito noise" artifacts in every bright scene. Filmed shots and CGI shots have a different color balance, making CGI characters and vehicles stand out like they were pasted on top of the raw film stock. Even the sound is clipping in places, and the pod race is missing the rumble I remember from the theater.
Compare this to the picture quality on the Star Wars Episode 2, Attack of the Clones DVD. Every scene is nearly flawless, with no noticeable edge enhancement and an excellent color balance. The sound fidelity really exercises a good sound system.
I'm blown away that LucasFilm and Fox would go through the effort to remaster the original Star Wars Trilogy, only to drop the ball on EP1. Maybe we'll see a "remastered" EP1 in a box set of the new Trilogy now that Revenge of the Sith has been released. Wishful thinking? Help me Obi Wan Kenobi, you're my only hope.