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Yes, the new version is anamorphic. It is better than the German disc, but there's still room for improvement. There's a fair amount of compression artifacts in the dark scenes. Something tells me we won't get the best version of Lost Highway until the Lynch supervised transfer he did for USAFilms (now Universal) finally gets released. It's been held up for a few years now, first by the sale of USAFilms to Universal, and then by Robert Blake's legal troubles which made Universal squimish. Hopefully it'll see the light of day sooner or later. At this point they might as well put it out on HD-DVD.
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