What about the regular live action footage? Im assuming that was shot on video also. The DVDs look horrible on my HDTV.
Nope, was shot on film.
These points have already been discussed in some detail in various posts on this board, the latest thread is here: link
Suffice it to say that at least SOME of the original film stock remains, as evidenced by the bits used for "These Are the Voyages" which was of course in HD.
I'm of the position that this will most definately happen, probably within the next 5 years. I'm excited to hear that it's already being discussed.
And yes, the current TNG DVDs look horrible on my HDTV too.
I hear some of the more expensive upscaling DVD players may do a better job.