I received my replacement copy on Saturday. It took about 3 weeks from sending them the original.
I haven't watched it all yet, but I checked the scene where the DNR wiped out a lightning strike, and it was fine. Definately more filmlike, including film grain.
I think the real issue was that Paramount/Universal released it on the cheap using the original DVD encode which was totally unsuitable for HD.
Saying all that, I never really had a problem with the original, but as I am upgrading to a larger TV soon, I thought I'd take advantage of the exchange.