Thanks for posting the link, Gothick - though I couldn't even get through watching half of the video because I was getting sicker by the second as details of the problems unfolded (I mean, actually showing the crew shooting a scene!!).
Though fans of the '91 DS are all too familiar with the horrors of not doing color correction correctly!!
As for the friend who told you that a few years ago, a properly restored edition was finally issued for the '91 DS, did they actually buy the set and/or see it for themselves? The reason I ask is because, if not, they may have simply been going by several reports that were circulated that such a set was to be released. However, truth be told, when people bought the set in question, it turned out to be exactly the same as the butchered version even though all the stats on the box say otherwise and certainly lead one to believe everything wrong with the first transfer has been corrected. The amount of anger that generated in the people who bought it (thankfully I hadn't gotten around to it) was far from pretty...