Hi,
Good question. A DVD offers a video version of a film and in some cases supplements as well. I'm not going to talk about supplements except that I do not consider them an asset unless they do not reduce the image and sound quality of the film itself (and they usually do by taking bits away from the main feature).
For me an excellent/reference DVD is a DVD that
- looks like the film master used (as good as possible given
  the limitations of the medium compared to 35mm film) and
  not like digital video, especially artifact ridden video.
  Naturally the better the film master is the better the
  DVD can look as well. Excellent DVDs need an excellent
  film master to fully use the potential of the format.
- looks good even on the most revealing watching conditions,
  such as when projected on a 2-3m screen with a state of
  the art CRT or DLP projector. And not only when watched on
  low resolution standard TV monitors sitting 7 or more
  screen heights away and with suboptimal lighting
  conditions (bright room instead of dark room).
Excellent DVDs are rare among Western DVDs and not 
(yet) existent among Indian DVDs.
The reason is it costs more than a run of the mill DVD and
you need to know exactly what you are doing during the
mastering stage. Unfortunately many don't want to spend the
money or don't know/care how to get the film look and avoid
the video look.
To get a superior film-like DVD one must
- transfer from original film elements, using digital
  component video (HD -> PAL/NTSC or direct to PAL/NTSC)
- use a state of the art telecine that produces sharp
  pictures (almost) free of digital artifacts
- use the correct theatrical aspect ratio and 16:9
  enhancement for widescreen films.
- master the NTSC DVD with a corrct 2:3 pulldown so correct
  progressive film frames can be reconstructed by
  progressive DVD players and external video processors that
  have inverse 2:3 pulldown implemented. Do not do format
  conversion from PAL to NTSC, NTSC to PAL, HD to PAL/NTSC
  which compromises the original film frames and introduces
  motion artifacts during playback. If you do the film look 
  is lost and it looks like video, even if everything else
  is done optimally.
- color and contrast correct the film digitally for optimal
  playback with 8bit video, preferably in the telecine or
  on the 10 bit HD master so rounding errors and
  recompression artifacts are minimised.
- use a state of the art MPEG encoder and use a high enough
  bit rate to handle the enormous detail present in a sharp
  transfer. Optimise the compression by carefully tuning the
  MPEG-2 parameters to the image content.
- not optimise for small TV screens where some edge enhance-
  ment usually looks 'nice', but looks ugly on bigger 
  screens. People that like the pseudo sharp look can use
  their TV sharpness function. Forcing everbody to endure
  enhanced edges makes no sense. It also destroys the film
  look. Don't use edge enhancement at all. Make a naturally
  sharp transfer and use a high bit rate if sharpness is
  what you want (and hopefully you do!).
- not reduce sharpness in horizontal or vertical direction
  with a low pass filter so a lower bit rate can be used
  and there is less flicker on interlaced monitors.
- not apply noise reduction to the transfer since it
  inevitably leaves a trail of artifacts behind that again
  destroys the film look. If the film master is too noisy
  use a better master. If none is available encode at the
  highest bit rate. Use high quality digital restoration
  methods if film defects are too annoying otherwise, but
  not a real time general purpose noise reducer. Be aware
  that edge enhancement and noise reduction is often per
  default built into and active in telecines and MPEG
  encoders alike and may actually be active while you are
  not aware of it. In some brands/models you can't turn it
  off, EVEN IF YOU WANT TO! In that case ask for software/
  hardware updates and insist on the possibility to turn 
  it off. This situation is wide spread and affects top
  films like "Star Wars: The Phantom Menace" which has some
  excessive edge enhancement. But Fox plays dumb and denies
  they applied any. A simple look at the picture proves them
  wrong. Scary.
- Concerning sound quality use again the best sound masters
  available. Use the high bit rate Dolby Digital or DTS.
  Don't generate pseudo 5 channel mixes from mono sources
  and don't reduce the dynamics of the master. Instead map
  the loudest sound of the audio master to 0DB so the full
  digital resolution is used and no bits wasted.
If you do all of this you will get a DVD that looks and 
sounds remarkably like the film master, film-like, natural,
including the masters artifacts (speckles, scratches, grain,
out of focus shots etc.). If you want to get rid of the
film masters artifacts use a better master or CAREFULLY
apply digital methods that do not add any new (visible)
artifacts.
Such a DVD looks better than bad HD-TV. Actually most non
experts will think it is HD-TV when watching it with high-
end equipment. It looks great! Only good HD will clearly
show the still existing limitations of such a DVD (except
for good 35mm prints, of course).
cheers
					Michel Hafner
					
http://www.imdb.com
 