I just got M&C from Netflix today and took a brief look at a few scenes. From what I've seen, I'm actually pretty happy with the transfer. There is much more detail in most shots, the blacks are deeper and usually show more detail, and the colors, especially flesh tones, looked much better than the DVD. But, I think that it could look even better if given a new transfer as the quality seemed to change from shot to shot. The faces look softer than I'd expect and the print itself is dirtier than I'd like. Still, it's a nice improvement, but only if it was priced at around $20, not $30.
The sound, even at 1.5 mbps, sounded noticeably better than the DVD's DTS track.
