The following Wired story talks about a service that restores films using a huge bank of Apple Power Macs. It sounds like the results are excellent. Hopefully, the cost will decrease and some of the old b-movies and bad movies that have suffered will be restored.
Man, a digitally restored version of The Terror of Tiny Town.
(I can always dream, can't I?)http://www.wired.com/news/wiredmag/0,72308-0.html?tw=wn_index_4