pwnsweet Is doing an insane and amazing job correcting the Broadcast version of Episode 16 I have also offered to help color correct the Episode after he is done his wizardly.
Suggested fan project: fastidiously recreate episode #16 from scratch. (Would anyone be crazy enough to even consider it?)
I've actually thought about doing exactly that. And I even suggested it to some fans in another community. They called me a fool when I said I was serious about it.
I think is doable giving enough people interested. We just need half a dozen more fools like me.
Ssplitting the job with half a dozen of fans with some decent talent in Photoshop, Illustrator After Effects and PaintSAI would certainly be enough (given enough time, of course) to do a digital reanimation of Episode 16 by vectoring the low resolution cells one by one, manually. That would be the biggest time consuming work but could be done by anyone that know some intermediate skills with Photoshop/AI or PaintSAI. We are looking at around 200~500 unique cells to be vectored. Giving 20 minutes for each vectoring and another 20 for coloring each cell divided by 4 people, that would be around 20-40 hours of work which is not that absurd. However, redoing the backgrounds would be the most troublesome task, as someone with proper drawing skills in the area to try and mimic the art style and CREATE new detail that don't look off, would be needed. For backgrounds, we would need another 50~100 unique drawings. Which are much more time consuming to do and would need someone with proper talent. Combining and finalizing everything, would actually be the easiest part, anyone with some intermediate knowledge of AE, such as myself, could do it.
Just find someone who would be willing to do the backgrounds, no matter in how many months, even years it would take, and committed to the job, and it could be done.
The most difficult scene would be Unit 01 breaking out of Leliel, as the cells are blurred from the sprays of blood. Mimicking the blur effect of the blood and giving the right "texture" would also be tricky.
Getting an "analogical" 16mm filmic feel would also be a must for a digital remake, but could also be done remarkably convincing with overlayed grain, fake textures and artificial shake.
I have expertise in After Effects and Photoshop, and know how to do some basic vectoring, So that would be one person.